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What are Stock Certificates?

Corporations sell stocks to people so that they can raise capital. 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. The number of shares you buy from the corporation represents your interest in that corporation. And he becomes a shareholder of the corporation.

At least half of the corporate stock is retained by the corporation. The remaining shares of corporate stock are sold to purchasers or on the open market through stockbrokers. There are corporations where their employees get the remaining shares of stock of the corporation. Owning more than half of the available corporate stocks will give you the power to determine how the corporation conducts business. And this is why most corporations try to own more than half of the corporate stock. The controlling or majority shareholder is the one who owns more than half of the corporate stocks. Then you will have the right to vote or the right to receive dividends from the corporate profits.

The common stock and the preferred stock are the two different types of stocks that a corporation can issue. Common stocks are issued to shareholders. The other type, the preferred stock is similar to a promissory note which has a fixed dividend percentage rate attached to it. When the corporation is dissolved, all corporate stockholders are given a share of the assets of the corporation. Common stock can be voting or non-voting. Holders of voting common stock gives you a vote in elections of the board members of the corporation. Non-voting stockholders cannot vote during election of the corporation’s board but they will receive a share of corporation assets when the corporation gets dissolved.

If you buy a number of stock shares in a corporation, then you will be given a document that certifies this ownership which is a stock certificate. This document is issued when you buy shares of corporate stock. Stock certificates are usually signed by the corporation’s legal representatives. Your stock certificate is evidence of your ownership interest in a corporation. Owning corporate stocks mean that you can exercise your rights and privileges associated with your being a shareholder in the corporation. The rights and privileges that you can exercise as a shareholder include having a voice and a vote in shareholders meetings.

You can get your stock certificates online. Online, there are many sites offering free stock certificate templates that you can use. You simply enter the information into the form given on-site then place your order. This online stock certificates are a convenient way of getting your stock certificates. 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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