A Quick Rundown of

Stock Certificates

Money has become essential for one to afford almost everything and basic needs needed for a comfortable life. There are various ways that can earn a person money for upkeep other than the common means used by many people all over the world. Shareholders are provided with stock certificate to prove their ownership of part of a public company. Companies can raise money to expand or give better services by selling a part of itself to investors who become partial owners of the company. When one buys shares from the company, they are provided with stock certificates making them eligible for a share of profits made by the company in the future. This is a great opportunity to invest since the business may end up being very successful resulting to large amounts of profits for the shareholders.

Stock certificates in previous times were given as some specially designed papers to the shareholders. Such details as the date of issue, name of shareholder and others were included in these certificates to make them different. Watermarks, seals and several signatures were included in the certificates making them unique and impossible to duplicate or forge. Before being given the profits, the company first checked for the authenticity of the certificate to avoid fraud. As time evolved, there has been the introduction of digital forms that have replaced these stock paper forms used initially.

The companies usually manage the certificates and ensure to keep track of all processes done through the certificate into computing systems. It is easier dealing with such digital forms known as book-entry since it eliminates the extra work needed to print and file paperwork. It is possible for a shareholder to request for a hard copy of the certificate from the company as they have the right to do so. If one chooses to be provided with paper forms, they can not use the digital forms from then unless they shift to digital again. Getting a certificate in paper form can be done through brokers to act on behalf of the client with the company.

Transactions between a company and their shareholders can be carried out by the brokers who become intermediaries between them. Optionally, one can decide to get the certificate themselves from the company where no intermediary is involved. Banks and other trust institutions can be used to get the certificate from the company on behalf of a client. Digital forms are easy to manage for both clients and the firms since one can get access from computing devices anytime from anywhere using the internet. A a client should counter check prices charged by various brokers before hiring them to get the fairest charging brokers.