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An investor is issued a share certificate, also known as a stock certificate, when they buy shares of a publicly-traded company. The share certificate serves as a receipt for the stock purchase. The certificate includes important details about the investor's stock ownership such as the number of shares purchased.
Proving securities ownership is easier if you can remember how the security was acquired. If you bought the security through a brokerage firm, contact the firm and ask if they have a record of your ownership. Brokerage firms are required to keep records for only six years.
What Is a Stock Certificate? A stock certificate is a physical piece of paper that represents a shareholder's ownership in a company. Stock certificates include information such as the number of shares owned, the date of purchase, an identification number, usually a corporate seal, and signatures.
Companies do not have to issue these certificates automatically but are legally required to issue a certificate when requested. While stock certificates are mostly symbolic, they can be valuable to investors that want physical proof that they own stock.
A valid stock certificate establishes ownership. So does or the shareholder's name in the corporate records. But, the shareholder often has neither. Most small corporations never issue share certificates at all.
The easiest way to get a stock certificate is via a broker, but be prepared to pay for it. The simplest way to get a stock certificate today is to ask your broker. If you bought your shares through a brokerage firm, it will have an account with your name and the number of shares you purchased.
If you buy stock from a specific company, you can reach out to that company and ask that it mail you a physical stock certificate. If you are unable to find contact information for the company, you can visit the Secretary of State website in the state where the business operates.
As you complete your stock certificate, you will need to provide certain information related to your stock certificate, such as the company's state of incorporation, the number of shares being issued, the type of stock being issued, the par value of the stock, the name of recipients, the titles of any documents ...