California Stock Certificate
101
A stock certificate (a.k.a. certificate of stock or share certificate) is a legal document setting forth that you own
shares of stock within a corporation. A stock certificate certifies that you are the registered holder of a certain number of shares, transferable
only by you, and organized under the laws of the state. It’s typically created with a complex art design to keep them from counterfeit reproduction.
The stock certificate includes:
- Your Name,
- Business Name,
- An Identification Number,
- Number of Shares you own,
- Corporate Seal, and
- Authority Signatures (e.g. President, Treasurer, etc.).
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What are Stocks?
A stock represents how much of the company is yours. If you have a stock,
you wield a percentage of the corporation’s assets and profits. The worth of your stock goes up
as the business grows, and decreases if the business doesn’t do well and loses value. You can buy
as many stocks as the company is willing to distribute—and the more stocks you have, the more of the
company you actually own. It doesn’t necessarily mean that you can make decisions on daily company operations,
or that you have the right to any of the physical assets the company owns, or that you are personally liable for anything.
In that regard, you’re not actually an owner of the company.
What can I do as a Stockholder?
Stockholders may have the power to cast a vote on major concerns affecting the corporation, such as
affairs regarding company assets and mergers. Stockholders may also sell or trade stocks, or keep them and be paid regularly
(usually on a quarterly basis) from company profits or reserves. Stockholders may also have the right to review the corporation’s
books and records, and sue the entity for wrongful actions. Ultimately, stockholder rights may depend on the terms and conditions
of the stock certificate. If you own or are starting a business, it would be a very smart move to get a reliable attorney on your
side to help you create a stock certificate that’s worth the paper it’s written on.
We can help!
Spiegel & Utrera, P.A. offers complete business formation services, years of experience that can’t be matched by many and the best
price out there. Having us prepare your stock certificate over a non-attorney will ensure that all of your bases are covered with
free legal advice. Free stock certificates included in our
complete incorporation package:
INCLUDES State Filing Fee,
INCLUDES Company Seal and Book,
INCLUDES Articles of Incorporation,
INCLUDES Corporate Minutes,
INCLUDES Corporate By Laws or LLC Regulations,
INCLUDES Membership or
Stock Certificate,
INCLUDES Banking Resolution,
INCLUDES Preliminary Name Search,
and talk to a lawyer to get legal advice at no extra cost!
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