The business operations of the world have evolved a lot over time. Some of the ancient traditions and customs are still practiced but their mechanisms have been altered or modified.
The basic concept of business is a trade. This is the exchange of things of value between two or more parties. These things of value are often referred to as stock. In older times people used to trade in different kinds of stock and the stock was physically handed over to the buyer upon payment. But now things have changed a little bit. There are stock certificates that are traded.
What is a stock certificate?
A stock certificate certifies that particular stock is in the ownership of a person. In this way, the legal ownership of a person is certified with the help of the certificate.
A stock certificate is a piece of document that has a legal value and can be considered as a proof of ownership. Every stock certificate has an intrinsic value and can be bought and sold several times. The value of a stock certificate can be assessed by an authorized and licensed financial evaluator who carries out a formal inspection of the physical stock of goods and then give it a value that will be reflected on the certificate.
When the investors purchase the shares, they get a stock certificate certifying that the investors are the owner of the shares. The purpose of using the stock certificate is to provide the information related to stock such as a total number of shares purchased by the investor, identification number of the certificate and some other major details.
The organization issuing the stock certificate ensures that duplication can be avoided by using a sheet on the certificate and a unique design.
There are two purposes for using a stock certificate template. They are given below:
- It can be used as a document for sharing of allocation of stock
- Transfer of goods is often carried out through the transfer of stock certificate.
The contents of the stock certificate are very basic and there is a standard pattern of making a stock certificate. If you desire to draft one for your company or business purpose you can download the template from our websites free of cost.
Preview and detail of the template
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License: ENERGY (Personal use only)
(Distribution) by Kate Elizabeth(CEO)
Importance of stock certificate:
In any organization, the stock certificates are used primarily for indicating the partial ownership of the individual in the company. When you buy some shares of the company and you want the written proof that you have partial ownership in the company, you can request the company to issue you the stock certificate. The company keeps the electronic record of all those people who have partial shares in the company.
How to create stock certificate?
- The stock certificate is made with the standard format and design of the certificate. However, various organisations can bring modifications to the design in order to maintain the identity and uniqueness.
- After the design and format has been decided, the details are added to the certificate. The major details that are added to the certificate include the name of the recipient of certificate, total number of shares bought by the investor, signatures of the shareholder and the person issuing the certificate and a lot more.
- While writing the stock certificate, it should be kept in mind that the certificate should not be overcrowded with the details. For this, you can remove unnecessary details from the certificate.
Stock certificate template:
People who don’t know how to make the stock certificate can download the stock certificate template which is a readymade certificate that can be downloaded and modified and printed. The empty fields in the certificate make the user to know what to add to the certificate.