In this post, you will get knowledge about the stock certificate template. In 1606, the first stock certificate was issued by the Dutch East India Company. It is basically a legal document that shows a shareholder’s ownership in an organization. The shareholder gets this certificate after purchasing stock in a company. This certificate safeguards legal rights. In short, the stock certificate represents partial ownership in a company. Additionally, you can also use different stock certificate templates, it depends on the type of stock you need.
What to include in a stock certificate?
A typical stock certificate should contain the following information;
- Organization’s name and location who is issuing the stocks.
- Buyers name
- The certificate number
- Number of shares owned
- The date of purchase
- An identification number
- A corporate seal
Things to keep in mind while applying for a stock certificate:
- At first, keep in mind that the stock certificate just mentions the shares that are purchased. It doesn’t mention any securities.
- Along with the total number of shares, a registered stock certificate contains the percentage of the title for the stockholder.
- Make sure that the background of the certificate is unique because it proves the authenticity of the certificate.
- Also, a stockholder can use the registered certificate for legal proceedings.
- The organization issues the certificate just the first time, you can’t receive a certificate each time you purchase the shares.
- If you have lost it then you have to pay a fine before a new one can be made. But in this current era, the certificates are saved electronically.
- Don’t affix the signature in the certificate electronically.
Different types of Stock Certificates:
Generally, there are two types of stock certificates;
Registered stock certificates:
This type of stock certificate serves as the record for the actual shareholders. Moreover, the information mention on the certificate appears in the registration record of the company that issues the stocks.
Bearer stock certificates:
As its name implies, it is for the bearer of the stocks. It provides the bearer all legal rights that are associated with it.
How can you cash in stock certificates?
If you have an old stock certificate then you can easily sell it via a transfer agent or a broker. But before doing this it’s better to research how valuable the stock is. Hence, if it becomes useless, still it will be wise to have checked it out. Many organizations use transfer agents to manage this entire situation. However, these agents have major functions such as canceling and issuing stock certificates, handle the compromised or lost certificates, and paying interest of stocks act as the middleman for an organization. If you want that these transfer agents handle your stock shares then visit the organization’s website.
In conclusion, a stock certificate acts as proof of ownership for the shareholders. It physically represents that you own stock in the company. Furthermore, using the stock certificate templates is helpful because you can change them according to your organizational and shareholder requirements.