Why Aren’t As Bad As You Think

August 17, 2019

Miscellaneous

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What are Stock Certificates?

In order to raise capital, corporations issues corporate stock. Being a part-owner of the corporation that issued you the corporate stock share is what you will become if you buy shares of stocks. If some shares of corporate stock are owned by an investor, this represents a proportionate share of interest in that corporation. This is how to become a shareholder of the corporation.

At least half of the corporate stock is retained by the corporation. Stocks that are not retained are sold by the corporation to individual purchasers or through stockbrokers. There are those who give the remaining shares directly to their employees. If a shareholder owns more than half of all available corporate stock then he will be able to determine the way the corporation conducts business. Corporatins want to maintain control of the business and this is why they don’t sell half of the corporate stocks to the public. Owning more than half of the corporate stocks will make you the controlling or majority shareholder. You will then be entitled to voting rights or dividends of the corporate profits.

There are two types of stocks that a corporation issues and these are the common stock and the preferred stock. Shareholders are issued common stocks. A preferred stock carries a fixed dividend percentage rate and is like a promissory note. When the corporation is dissolved, all corporate stockholders are given a share of the assets of the corporation. You can have a voting or a non-voting common stock. Holders of voting common stock gives you a vote in elections of the board members of the corporation. Even if you are a non-voting common stockholder, then you will receive a share of the corporation’s assets upon its dissolution.

A stock certificate is a document that certifies ownership of a specific number of stock shares in a corporation. A stock certificate is given to anyone who buys corporate stock shares. Stock certificates are usually signed by the corporation’s legal representatives. If you have a stock certificate, then it shows that you are a part of owner of that corporation. If you own corporate stock, then you are able to exercise all rights and privileges associated with being a shareholder in the corporation. This is why you can have a voice and a vote in any of the shareholders’ meetings as your right and privilege as a shareholder.

It is now very easy to get your stock certificates online. They have many free stock certificate templates that you can use. There is some information that will be asked of you in the online form and so you must fill them up carefully so that you get the correct stock certificates that you need. You get all the convenience when getting your stock certificates online. If you want to be part owner of a corporation, then buy your stocks now and get your free stock certificate online.

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