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What are Stock Certificates?

The reason why corporations issue corporate stock is in order to raise capital. Anyone who buys Corporate Stock becomes a partial owner of the Corporation which issued the Corporate Stock. Your interest in the corporation is shown in the number of shares you bought from it. Shareholders are those that bought corporate shares from 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. Some corporations give the remaining shares of stock to their employees. Owning more than half of the available corporate stocks will give you the power to determine how 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. The controlling or majority shareholder is the one who owns more than half of the corporate stocks. He 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. Common stocks are usually sold to shareholders. Preferred stock is like a promissory note which carries a fixed dividend percentage rate. If the corporation is dissolved, the common stockholders receive a share of the corporation assets. 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. A stock certificate is given to anyone who buys corporate stock shares. These stock certificates are signed by legal representatives of the corporation which is issuing the stock. Your stock certificate is evidence of your ownership interest in a 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. Online, there are many sites offering free stock certificate templates that you can use. You can place your order by giving all the information that is asked of you in the boxes. 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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