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Corporation Stock Certificates

Planning Your Own Corporation Stock Certificate. A corporation stock certificate is known as a legitimate document that shows ownership of a stated amount of shares inside a corporation’s stock. It provides the investor/shareholder an fair interest in the corporation where he or she invested. Any corporation seeking to raise capital from outside investors should supply a stock certificate to all its investors.

Several steps planning your own corporation stock certificate :

To begin, download pre printed stock certificates from a business stationery supply company. Basic standard stock certificates present space to put your corporation name, investors and also other important information. Utilize your word processing software to accomplish this procedure.

Type the name of your corporation at the top on the stock certificate together with the state where your company is incorporated.

Assign a exclusive number to every certificate released to your investors. This allows you to monitor all your company’s certificates in case a investor wants to sell his/her shares.

Pre printed stock certificates

Type the name of the investor inside specified space offered on the pre printed stock certificate.

Type the amount of shares issued for your investor and the par value. Par value relates to the amount where a stock can be redeemed. Don’t mistake this with the market value of the stock or valuations. The par value is the bare bones minimum where the stock is definitely worth. When it comes to valuing the company, book value or net-tangible book worth can be considered.

Sign the certificate. The corporate secretary and the president of the corporate sign the certificate where is to be released to the investors. Stamp the certificate with the you corporate logo to validate it. Once the funds are cleared, provide the certificates in hard copy format.

Put a disclaimer, which is called the stock legend, in the back of the stock certificate stating that the shares are restricted. The U.S. Securities and Exchange Commission has certain restrictions regarding issuing and owning private placement stock. Rule 144 allows the resale of a restricted stock if certain conditions are met. It also describes how a restrictive legend can be removed. In order for the disclaimer to be removed you will have to retain the services of a transfer agent. He will verify the investor and provide an attorney letter stating that the disclaimer will be removed upon the surrender of the original corporation stock certificates.

Stock Certificate Examples:

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