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.
Most corporations retain at least half of the corporate stock. Stocks that are not retained are sold by the corporation to individual purchasers or through stockbrokers. There are those who give the remaining shares directly to their employees. You have the power to determine how the corporation conducts business if you own more than half of the corporate stocks available. And this is why most corporations try to own more than half of the corporate stock. The controlling or majority shareholder is the one who owns more than half of the corporate stocks. 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. A preferred stock carries a fixed dividend percentage rate and is like a promissory note. If the corporation is dissolved, the common stockholders receive a share of the corporation assets. You can have a voting or a non-voting common stock. If you hold a voting common stock, you are able to elect the board of directors of the corporation. 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.
If you buy a number of stock shares in a corporation, then you will be given a document that certifies this ownership which is a stock certificate. This document is issued when you buy shares of corporate stock. This is a document signed by the legal representatives of the corporation that is issuing the stock. If you have a stock certificate, then it shows that you are a part of owner of that corporation. If you are a shareholder in the corporation, you have rights and privileges that you can exercise in the corporation. This is why you can have a voice and a vote in any of the shareholders’ meetings as your right and privilege as a shareholder.
You can get your stock certificates online. They have many free stock certificate templates that you can use. There is some information that will be asked of you in the online form and so you must fill them up carefully so that you get the correct stock certificates that you need. 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.
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