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What are Stock Certificates?

In order to raise capital, corporations issues corporate stock. 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. This is how to become a shareholder of the corporation.

Most corporations retain at least half of the corporate stock. 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. 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. And this is why most corporations try to own more than half of the corporate stock. Owning more than half of the corporate stocks will make you the controlling or majority shareholder. He will then be entitled to voting rights or dividends of the corporate profits.

Corporations issue two types of stocks namely the common stock and the preferred stock. 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. Even if you are a non-voting common stockholder, then you will receive a share of the corporation’s assets upon its dissolution.

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. These stock certificates are signed by legal representatives of the corporation which is issuing the stock. If you have a stock certificate, then it shows that you are a part of owner of that corporation. If you are a shareholder in the corporation, you have rights and privileges that you can exercise in the corporation. These rights and privileges include having a voice and vote in shareholders meetings.

It is now very easy to get your stock certificates online. You will find many sites online where you can get your free stock certificates. 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. With your stock certificates, you are now certified part owner of the corporation you have bought your stocks from.

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