Stock certificate is a small legal paper that represents your shares or stocks in an organization or company. It proves your ownership in an organization. It is also referred as a “share certificate”. It contains information about No. of stocks you have, Issue date, Identification number and other related information.
You can find here a collection of stock certificate template in which blank stock certificates, a stock certificate for sale, back of stock certificate template and stock ledger template word are included. You can use sample stock certificate to understand more about the stock certificate process and how it works.
What is stock certificate?
A stock certificate proves that your ownership in an organization is certified. Each stock certificate must contain the signature of the organization’s president, this thing proves that certificate is legal and original. Owner of the stockholder receives this certificate from the company’s president.
Things should be included in the stock certificate
Things that should be included in the stock certificate are as follows:
- Name of the person who have ownership in the organization.
- Contact information of the stakeholder.
- Name of the company issuing the stocks
- The no.of share you have.
- Identification number.
- A section in which the owner of the share can transfer their shares to another person.
- The value of these.
- The type of share you purchase.
- Issue date.
- List of terms and conditions.
Types of market
Stock market is divided into two parts/section:
- Primary market: Primary market is also referred as to “new issue market”. In this section of the market, organizations sales their share to increase the level of their capital. Organizations directly sales their shares to investors.
- Secondary market: In secondary market, organizations are not involved to sell and purchase shares, investors do this work among themselves.
Things that should be kept in mind while creating a stock certificate
Some important thing to keep in mind while creating a stock certificate:
- Certificate should contain information only about those shares that are purchased.
- Must used a unique paper for stock certificate that proves the authentication of it
- Must contain the number of shares a stakeholder have.
- Certificate should not be issued every time when investors buy shares. When investors buy shares first time it should only issued at that time.
- If the stock certificate is lost, new certificate should be issued after fine paid actions.
- The signature on the stock certificate should not be electronic.
Here are some collection of attractive stock certificate template which may establish all the detail of stock ownership.