A stock ______ is a document that serves as a stockholders proof of ownership in a corporation.

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What is a corporation?
What is a limited liability company?
What is a partnership?
What is a general partnership?
What is a limited partnership?
What is a sole proprietorship?
What is proof of stock ownership?
Is a stock certificate proof of ownership?
What is stock of a corporation?
What is a document representing that you own shares of a company?

Malcolm Tatum

Last Modified Date: November 05, 2022

Malcolm Tatum Last Modified Date: November 05, 2022

Sometimes referred to as a certificate of stock, the stock certificate is a document that establishes the ownership of a specific number of shares in a stock that is issued by a given corporation. The stock certificate provides the legal ability to perform several different tasks involving the shares of stock. Among these rights and privileges are such essential tasks as trading the shares or participating in shareholder’s meetings.

Stock certificates are generally issued in two different types or categories. The first is known as a registered stock certificate. Registered certificates functions essentially as proof of ownership of the shares, with the name of the owner appearing in the corporation’s register of stockholders. A registered certificate of stock allows the owner to exercise all rights and privileges associated with being a shareholder in the company, including voice and vote in shareholder’s meetings.

Stock certificates are documents that establish ownership of a specific number of shares in a stock.

The second form of stock certificates is known as the bearer stock certificate. Essentially, the entity that is in possession of the bearer certificate may exercise any an all privileges that are authorized by the actual registered owner of the shares. This may include trading the shares on behalf of the owner, or voting the shares at corporation stockholder meetings, if the corporation’s charter allows this type of activity.

Owners of stock certificates may participate in shareholders' meetings.

From time to time, shareholders may choose to appoint a proxy or substitute to manage stock shares. The ability to utilize the services of a proxy is generally defined in the terms of purchase for the stock certificate and in the bylaws of the corporation that issues the share certificate. In most cases, the proxy has limited powers and will only cast votes according to the wishes of the legal owner of the shares. A proxy may also handle the sale of shares of stock on behalf of the stockholder, always working within perimeters that are set by the proper owner of the shares and in accordance with the terms of issue that govern the stock.

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including SmartCapitalMind, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Malcolm Tatum

What is a corporation?

A corporation is an independent legal entity that exists separately from the people who own, control and manage it.
It does not dissolve when its owners (or shareholders) die because it is considered a separate “person.”
A corporation can enter into contracts, pay taxes, transact business, etc.
The owners have limited liability.
Contact an attorney or an accountant to determine if this structure works for you.

What is a limited liability company?

A limited liability company (LLC) is similar to a corporation, but with slight differences.
Like a corporation, it offers limited personal liability.
An LLC is not required to hold regular stockholder or management meetings, and there are no requirements to comply with other corporate formalities.
Contact an attorney or an accountant to determine if this structure works for you.

What is a partnership?

A partnership exists when two or more persons co-own a business and share in the profits and losses of the business.
Each of the co-owners or partners contribute something, usually money or real property, to the business endeavor.

What is a general partnership?

A partnership where the rights and responsibilities are divided equally among the partners.
The partners are referred to as general partners because each partner can act on behalf of all the partners, and each partner is responsible for the partnership’s debts and obligations.
Contact an attorney or an accountant to obtain more information.

What is a limited partnership?

A partnership composed of both general and limited partners.
This type of partnership allows each partner to determine and/or limit his or her personal liability.
Unlike general partners, limited partners are not responsible for the partnership’s actions, debts and obligations.
General partners have the right to manage the business. Limited partners do not.
Both general and limited partners benefit from the business’s profits.
Contact an attorney or an accountant to determine if this structure works for you.

What is a sole proprietorship?

A sole proprietorship is the simplest and most common structure chosen to start a business.
It is an unincorporated business owned and operated by one individual with no distinction between the business and the owner.
Sole proprietorships, when not operating under the owner’s legal name, must register a fictitious name with the Division of Corporations.
Contact an attorney or an accountant to determine if this structure works for you.

What is proof of stock ownership?

A stock certificate is a physical piece of paper that represents a shareholder's ownership of a company. Stock certificates include information such as the number of shares owned, the date of purchase, an identification number, usually a corporate seal, and signatures.

Is a stock certificate proof of ownership?

A share certificate, also known as a stock certificate, is a documented proof of shareholding in a company. It can be a physical document or an electronic one, issued to a shareholder and signed on behalf of the corporation. This certificate is legal proof of ownership of a certain number of company shares.

What is stock of a corporation?

What Are Stocks? A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called "shares" which entitles the owner to a proportion of the corporation's assets and profits equal to how much stock they own.

What is a document representing that you own shares of a company?

A share certificate is a written document issued by a company to act as legal proof of ownership of the number of shares as specified in the certificate. It can also act as a receipt towards the purchase and ownership of shares of a company.