If you want to prove ownership of a certain number of stocks or shares, use a Stock Certificate.
A fillable stock certificate template makes writing a stock certificate quick and easy; fill in the blanks, and you’re ready to go.
You can download a template below and learn more about a stock certificate and what should be included.
What is a Stock Certificate?
A Stock Certificate is a legal document that proves and records ownership of a certain number of shares of stock in a corporation. A stock certificate serves as evidence that a stockholder owns shares of stock.
With proof of ownership, the shareholder may receive annual reports, declare dividends, and receive invitations to shareholder meetings. Additionally, holding a physical copy of the certificate may make it easier to get a loan on the value of the shares.
The authorized officers of the corporation should sign the stock certificate, usually the President and the Secretary.
Also, ensure you read the company’s articles of incorporation to understand the rules regarding your stock certificate.
What Happens If I Do Not Have a Stock Certificate?
Without a Certificate of Stock, the shareholder does not have proof of purchase or ownership. The U.S. Securities and Exchange Commission guides on what to do if your securities certificate is lost, destroyed, or stolen.
A Certificate of Stock records that you owned the shares and allows you to sell your stock quickly if needed.
More companies are moving away from paper certificates to electronic ownership (i.e., e-certificates) using the book-entry form provided by the Direct Registration System (DRS).
Sometimes, brokers charge $100-$500 for a physical certificate.
When Is a Stock Certificate Used?
A Certificate of Stock is often provided to shareholders as proof of ownership, especially in closely held corporations with only a small group of shareholders or investors. The corporation’s secretary should record all shares issued and maintain an accurate list of all shareholders.
Some stocks are purchased as a gift or collectible item. Although Disney paper certificates decorated with Tinker Bell are no longer available, an authentic registered Certificate of Stock for Pixar and DreamWorks Animation SKG Inc. still feature characters like Buzz Lightyear and Shrek, according to USA Today.
If you found dusty paper certificates in the attic, check out this Wall Street Journal article to determine whether you can cash out on the Certificate of Stock.
What Should Be Included in a Stock Certificate?
A stock certificate will contain the following essential elements:
- Name of the Corporation
- State of Incorporation
- Date Incorporated
- Number and Class of Shares Issued
- Registered Number of Certificate
- Name of Shareholder
- Date Certificate Issued
- Authorized Signatures
- Corporate Seal
Here are some other useful details a Certificate of Stock might include:
- Corporate Seal: some states require a seal to validate certificates
- Transfer Restrictions: check the corporate filing documents for fine print
Consider the following when creating your corporate stock certificate:
- Who is receiving the stock certificate
- What is the registration number of the stock
- When the stock was issued
- Where the company was incorporated
- How many shares of stock and their value
For more information, the U.S. Securities and Exchange Commission describes your choices as an individual investor regarding owning stocks.
Stock Certificate Sample
Here’s what a standard stock certificate looks like: