In order to raise capital, corporations issues corporate stock. If you buy a corporate stock share, then you become a partial owner of the corporation that sold you the stocks. Your interest in the corporation is shown in the number of shares you bought from it. This is how to become a shareholder of the corporation.
At least half of the corporate stock is retained by the corporation. The other half of the unretained stocks are then sold to individuals or through a stockbroker. There are those who give the remaining shares directly to their employees. If a shareholder owns more than half of all available corporate stock then he will be able to determine the way the corporation conducts business. Corporatins want to maintain control of the business and this is why they don’t sell half of the corporate stocks to the public. Owning more than half of the corporate stocks will make you the controlling or majority shareholder. Then you will have the right to vote or the right to receive dividends from the corporate profits.
Corporations issue two types of stocks namely the common stock and the preferred stock. Shareholders are issued common stocks. The other type, the preferred stock is similar to a promissory note which has a fixed dividend percentage rate attached to it. When the corporation is dissolved, all corporate stockholders are given a share of the assets of the corporation. Common stock can be voting or non-voting. You can join in the election of the corporation’s board of directors if you hold a voting common stock. Non-voting stockholders cannot vote during election of the corporation’s board but they will receive a share of corporation assets when the corporation gets dissolved.
A stock certificate is a document that certifies ownership of a specific number of stock shares in a corporation. This document is issued when you buy shares of corporate stock. Stock certificates are usually signed by the corporation’s legal representatives. Your stock certificate is evidence of your ownership interest in a corporation. If you own corporate stock, then you are able to exercise all rights and privileges associated with being a shareholder in the corporation. The rights and privileges that you can exercise as a shareholder include having a voice and a vote in shareholders meetings.
If you have bought stocks from a corporation and you need your stock certificates, then you can simply apply for it online. Online, there are many sites offering free stock certificate templates that you can use. You simply enter the information into the form given on-site then place your order. This online stock certificates are a convenient way of getting your stock certificates. With your stock certificates, you are now certified part owner of the corporation you have bought your stocks from.