Stock Certificates

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Stock certificates are proof of ownership of shares incertificates. Common shares are usually issued from a
a corporation. They signify that the holder of stockcorporation that is widely held and each share or stock
certificates has an ownership or equity in a corporationcertificate entitled the holder to one vote for the
and they convey certain rights and privileges to theofficers of the corporation at the annual general
person who holds them. One of those benefits is to bemeeting.
able to attend an annual general meeting or thePreferred stock is another form of share issue that
corporation, to vote on shareholder propositions, tocorporations use to spread ownership around within
vote for the officers of the corporation and to askthe marketplace and in addition to some of the normal
questions of the management of the corporation aboutrights of a common shareholder, a person who holds
any of their actions regarding the company.stock certificates in preferred stock does not get the
Ownership in a corporation is divided up into sharesopportunity to vote their shares at an annual general
and each corporation will decide how many shares tomeeting but they do get preferential treatment in a
issue and the price they will sell their shares in thenumber of other ways. They may include receiving a
marketplace. When person buys stock in a companyfixed dividend for their investment dollars and getting
they are used stock certificates in the value of theirthis payment before any common shareholders and
shares in the corporation. Only companies that arestock certificate owners get theirs.
registered as corporations have the right to sell stocksTo own stock in a successful company or to have
and issue stock certificates as proof of ownership.share certificates in a corporation is doing well is a
Other forms of business registration such as solegreat feeling for any investor. They have the stock
proprietorships, partners or limited liability companies arecertificates, the proof of ownership in the hands or in
not permitted by law to issue stock certificates or selltheir safe, and they relax in knowing that their
shares in the company.investment is well protected. Having shares in a
There are many different forms of shares that arecorporation and holding stock certificates is a great
provided by corporations and all of them provide stockway to be involved in the wonderful world of investing
certificates as proof of ownership or equity in theand business. If your stock is not doing so well you
corporation. They include common stock, preferredmay feel that your stock certificates are becoming
stock and many variations that allow different types ofworthless.