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Becoming Shareholders Of A Company Through Stock Certificates

To provide for daily needs, each person is engaging in a form of activity that earns them some money for this. 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. Stock certificates are a type of certificate that gives one the chance to be one of the shareholders of a company. At times a company may decide to become public and they invite people to buy shares of the company to raise more money to run the business. Persons are presented with the certificate so that they can use it to claim dividends gained by the company in the future. If the business succeeds and makes huge amounts of profit later on, those who invested get lots of returns for their shares.

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. To ensure that only legitimate shareholders were given their dividend, the certificate had to be checked for authenticity. Time has changed and as such these certificates are being given in digital form rather than the previous hard copies.

The companies usually manage the certificates and ensure to keep track of all processes done through the certificate into computing systems. Companies were inconvenienced in the past by having to do many things like printing and physically checking the paper stock certificates. 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. Shareholders are only allowed to use only one of the two forms but not both at the same time. To claim a paper stock form, one can use various channels such as going through a broker to arrange for it to be made.

Brokers are important in such deals as they act as links between clients and their respective companies and carry out tasks on behalf of the clients. Companies also allow for their clients to directly request for the certificate personally without hiring brokers. Banks and other trust institutions can be used to get the certificate from the company on behalf of a client. The process of managing stocks is easier nowadays due to their availability online making them accessible at all times from anywhere. Different brokers charge different amounts of fees for their services.