Share trading certificate states about the money, which investors have invested in the company. In other words, these certificates prove the investor’s amount of ownership in the respective company. There remain a number of things on these certificates like number of shares, the shareholder’s name and address and many other related things.
The share certificate plays an important role in the trading process and moreover, it is related with the security of the shares itself. All the records in the share providing company is maintained to a large extent, through these certificates. This certificate helps the company to maintain proper record of the stock transfer. The Stock certificate, notes related to the stock value and its characteristics, etc. are the part of the share certificate kit.
There are some common things, which can be found in every company’s share certificates. These are the name of the shareholder, his or her present and permanent address, signature, number of shares, etc.
Each certificate has its own number through which it can be identified. The certificate makes the shareholder a legal owner of the specific number of shares. The share certificates are provided in different shapes.
On a Standard certificate, one can find the corporate name and all the related information about the share. Custom printed certificate is another type of share certificate. The company name and information about the shares are common in these certificates also. The additional things are the state of organization, the logo of the company, etc. These certificates are provided with various types of border, sizes and in different colors.
Every stock certificate should carry the sign of the president and secretary of the company because in absence of the signatures, the certificate has no value. The company keeps the latest records about these certificates and it is very necessary for both the company and the shareholder, that whenever there is a transfer of the shares, the company is informed about that. The company, after being informed, issues new certificates to the new shareholders.
It should also be kept in mind that according to the trends of the online share trading, the share brokers generally keep the share certificate of the clients with them. The brokers actually perform the job of trading and the certificates are forwarded to the clients, whenever there is a need to take some vital decisions.
Last Updated on : 26th June 2013