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, an identification number, and signatures.
Stock certificates come in two forms: paper stock certificates or electronic stock certificates. Although the paper stock certificate still exists, it costs a great deal ($500) to replace, it is easier to lose, and it is harder to keep track of in a stock ledger than the electronic stock certificates that have come about in recent years.
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).
- Par Value Amount - Par value is the nominal value, or face 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: