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A stock certificate is a physical piece of paper that represents a shareholder's ownership of 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.
While limited liability companies (LLCs) don't issue "stock," they use a similar document, called a membership certificate, which they issue to their members to show percentage of ownership. Typically, the founding owners of the LLC will designate how many membership units the LLC will issue.
Unlike a corporation, an LLC has members, not shareholders. Members of an LLC can hold an ownership interest and there can even be membership certificates, but not stock certificates as one would have with a corporation.
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.
A valid stock certificate establishes ownership. So does or the shareholder's name in the corporate records.
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 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.
In corporate law, a stock certificate (also known as certificate of stock or share certificate) is a legal document that certifies the legal interest (a bundle of several legal rights) of ownership of a specific number of shares (or, under Article 8 of the Uniform Commercial Code in the United States, a securities ...