North Dakota Preferred Stock Certificate

State:
Multi-State
Control #:
US-1080BG
Format:
Word; 
Rich Text
Instant download

Description

Preferred stock is a class of shares of stock in a corporation which gives the holders priority in payment of dividends and distribution of assets in case of dissolution of the corporation over owners of "common" stock. Preferred stock shareholders do not participate in higher dividends if the corporation makes large profits, and usually cannot vote for directors. Also unlike common stock, a preferred stock pays a fixed dividend that does not vary, although the company does not have to pay this dividend if it lacks the financial ability to do so. The dividends paid to preferred shares are deducted as an expense because they are required payments, unlike the common stock dividend which is just a sharing in part of the profits. Like common stock, preferred stocks represent partial ownership in a company. A stock certificate must be in writing and signed by the designated corporate officers. It is contractual in nature, since it either sets forth or incorporates by reference the rights, privileges, and duties of the corporation and of the stockholder, both in their relationship to each other and to other stockholders.
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FAQ

While you need not hold a stock certificate to show proof of the number of shares you own in a business, you can still request a paper certificate if need be. Even if the stock is purchased electronically, you can still obtain a paper certificate if you wish to have one on hand.

A stock certificate is a legal document that verifies an investor's ownership of common stock shares, a type of security. A stock certificate is usually a physical paper record that identifies the investor as the owner of the shares and the number of shares owned.

If the company is no longer in existence, the share certificate itself might still have some value to a collector. Share certificates are collected by scripophily enthusiasts for their historical significance and/or for their artwork and intricate engraving.

A preferred stock certificate is a document that identifies the ownership share of an investor in a corporation.

A share certificate is a written document signed on behalf of a corporation that serves as legal proof of ownership of the number of shares indicated. A share certificate is also referred to as a stock certificate.

The most direct route to get a share certificate is to contact the transfer agent for the stock. You can find a stock's transfer agent listed on the investor relations tab of the company's website, or by calling the investor relations department directly.

Callable. Most preferred shares are redeemable, giving the issuer the right to redeem the stock at a date and price specified in the prospectus.

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North Dakota Preferred Stock Certificate