Know About Various Types of Stock Certificates
September 23rd, 2009 |
A stock certificate is a legal document that spells out the specific number of shares. It certifies ownership of certain shares in a company. Want to know more about the different types of stock certificates? Here is the list!
There are different types of stock certificates which are available in different borders, styles, colors and sizes. These are:
Registered stock certificates: It shows the owner’s name on the certificate with the number of shares, stock certificate number, date issued, CUSIP number and transfer agent.
Bearer stock certificates: These have now become obsolete. It was used for bonds which could not be replaced if lost or stolen. It doesn’t have the name of the owner.
Book Entry stock certificates: These kind of stock certificates are written as records by the brokerage firm. These are not available in a physical form and are mostly common as certificates of deposit and bonds.
Street Name stock certificates: These kind of certificates are stored electronically. This helps in the quick sale and purchase of stocks
Direct Registration System: These are also recorded electronically. It reduces the paperwork and also reduces the risk of any loss.
Obtaining a Physical Certificate: Some people still want to follow the old way of maintaining the physical certificate for their own records. Many firms charge a fee for such delivery.
It has to be kept in mind that those companies which are registered as corporations have the right to issue stock certificates. The other forms of business registration is not authorized by law to issue stock certificates. Many online stores have standard and customized stock certificates which are made available on orders.
Tags: legal document, Stock Certificates