What is a Stock Certificate?
A stock certificate is the document representing ownership in a company. Stock certificates will include information such as the number of shares owned, the date on which the shares were issued, an identification number, and signatures of the company's officers.
Stock certificates come in two forms: paper stock certificates or electronic stock certificates. Although the paper stock certificate still exists, they are expensive to replace, are easier to lose, and are harder to keep track of in a stock ledger than the electronic stock certificates that have come about in recent years. Indeed, many companies look forward to moving away from paper stock certificates and to electronic stock certificates when adopting an equity management platform.
What information is on a Stock Certificate?
- Certificate Number - Each certificate has its own certificate number, issued by the company, which allows it to be tracked.
- Company Name - The company whose stock you now own.
- Stock Class - This indicates the type of stock this certificate represents (Common or Preferred, and in the case of preferred, which series of preferred).
- Par Value Amount - Par value is the nominal value of the stock.
- Number of Shares - The amount of shares it certifies ownership of.
- Stock Owner - Certifying you are the owner of the stock.
- Date - Indicates the day on which the shares were purchased.
What do the Legends mean?
The Legends on the reverse side of the certificate represent required notices to inform the shareholder that they must comply with the applicable laws and company agreements restricting the sale, transfer, or pledge of the shares.
What does a Shoobx created stock certificate look like?
A Shoobx generated sample stock certificate will look like this: