A corporation may be divided into several shares, these are known as ‘stocks’. Stocks also refer to the ownership certificate while ‘shares’ may refer to the stock certificate. A Stock Certificate Template is a legal certificate that certifies the ownership of particular stocks or shares. The person owning the stocks or shares have possess a stock certificate as a proof of the transaction or purchase. Stock certificates can be paper stock certificate or an online one, anything that suits the corporation and the owner’s preference. It is also known as share certificate, certificate of acquisition, physical certificate and so on. The stock certificate can be a form of evidence to state the transfer of a stock or share from a previous stakeholder to the current stockholder.
Stock Certificate Template
The certificate of stock template is an easy method to construct an effective stock certificate without major hiccups. When a new corporation is formed a certain amount of shares or stocks are authorized and issued to the shareholders and stakeholders to fund the corporation. The transaction can be made legit using transaction bills, receipts or by issuing a physical certificate of stock. A variety of different models of stock certificates can be made according to preference say cheap to highly expensive. But there are several common items present in the stock certificates irrespective of the variations. These common essentials include large variety.
Blank Stock Certificate Format
Corporation Name – The name of the corporation that issued the certificate and to which the stocks are a part of.
Incorporation state – State of incorporation denotes the state in which the entity or corporation is registered. The corporation can be registered where it does its business or in a different state. The corporations are further classified by IRS into different types.
Incorporation date – The date of incorporation is also essential and should also be included.
Number of shares – The number of the issued shares or stocks should be mandatory included for clarification.
Share class – The class of the issued shared should be detailed. Class of shares can be of different types. Mainly depending on the class of the issued shares or stocks the voting rights also differ. This is done to make takeovers difficult and for the major owners to retain control. Common classes of shares are class A and class B, but there can be more types depending on the corporation.
Corporate Stock Certificate Example word
Name – The name of the stakeholder should be present. Full legal names are to be mandatorily used to avoid any later complications.
Certificate number – The registered number of the certificate issued should also be present for legal reference.
Sale bill – For stocks in transfer usually a bill of sale is also attached.
Date certificate – A date certificate issued is also attached as a proof.
Signatures – Authorized signatures of officials issuing the certificates and other significant people like the new stockholder should be included.
Free Stock Certificate templates
Seal – The corporate seal is also present in the certificate to authenticate the certificate as legal and valid.
Usually the secretary of the corporation keeps a record of all the stocks and shares issued. By possessing the certificate of stock a stockholder can be invited to stockholder meetings, receive the annual report of the corporation and can even declare dividends.
The certificate of stock is known by some other names listed below:
- Certificate of Acquisition
- Physical Certificate
- Paper Stock Certificate
- Notice of Shareholder Ownership
- Share Certificate
Why do i need Certificate of Stock?
A stock certificate is a necessary document for the stockholder. It certifies that the stockholder owns the stock share. This ownership proof will help the shareholder to declare decedents, receive annual reports and invitations for the shareholders meetings. Also, this copy of the certificate will help the shareholders in getting loan on the value of shares. There are different kind of certificates available for the stockholders for various uses. The certificate is divided into two forms-
Registered stock certificates– These certificates are an evidence of the title and record of holder’s name in the register of stockholders.
Bearer stock certificates- It implies possession of the certificate allows the holder to utilize all legal rights associated with the available stock. this certificate have become uncommon with the passage of time.
What should be included in this certificate?
A certificate must consist of the essential details. Every certificate has different fields based on the requirement. When we talk about the stock certificate then the following details are necessary to be mentioned in it.
- Who is receiving the stock certificate
- When the stock was issued
- Where the company was incorporated
- What is the registration number of the stock
- How many shares of stock and their value
What to do when stock certificate stolen or lost?
If a certificate of stock is stolen or lost then banks, corporation, transfer agents and brokerage firms have procedures to provide the replacement. You need to contact the concerned authority immediately, request to stop transfer against missing securities. The broker will help you in this situation. The stop transfer will restrict the person from transferring the title suit to another person. Also, if you are expecting the transfer certificate through Email and hadn’t received yet then contact the organization.
The certificate of stock is hundreds years old procedure. The first certificate was introduced in the year 1606 issued by Dutch East Indies company. Earlier, it was legal type of currency but now it has no value. But you can hold it for scriptophily. This article has provided you the valuable information related to the stock certificate. The format and templates will give you an outline of creating certificate. I am ending my article here and hope that it has helped you in getting knowledge about certificates.