Posts Tagged ‘certificates’

Increasing Importance of Stock Certificates

Wednesday, November 11th, 2009

A stock certificate is issued by corporations to certify the total number of shares. It is a legal document that reflects that the person or the corporation holding them owns a particular number of shares of the respective company. These stock certificates give a right to the owners to attend the general meetings of the company and also allow him to cast a vote in these meetings.

There are many kinds of stock certificates that are available in the market these days. Registered stock certificates contain the name of the owner, the number of shares he holds in that particular company, the stock certificate number, its issuing date, CUSIP number and transfer agent. Bearer stock certificates were used earlier but now their usage is avoided by the companies as they are irreplaceable if stolen and contains no name of the owner. There are a few other kinds of certificates available as well like Book Entry stock certificates, Street Name stock certificates, Direct Registration system and Obtaining a Physical Certificate. Out of these, the registered stock certificates are the most commonly used ones by companies. (more…)

Uses of Stock Certificates

Tuesday, November 10th, 2009

Almost every organization issues certificates that represent the company’s ownership and shows the number of stock shares. These certificates are issued to the stockholders of the company. The shareholder is entitled with the right to attend the meetings hosted by the company and it also entitles him to vote while the company is thinking of implementing certain changes in the policies, procedures or anything of similar sorts. Though they are a bit expensive, still companies prefer these stock certificates as they can be customized as per the needs of the company.

The stock certificates come with unique designs and are easy to customize. These certificates usually come imprinted with the name of the company, the belonging state of the organization, the number of authorized units of the company and a signature line. The corporation can customize the stock certificates as per its necessity. In some certificates, there comes a border lining of different colors like orange, blue, green and brown that makes it unique and attractive. (more…)