Fillable Form Stock Certificate

What is a Stock Certificate?

A Stock Certificate is a financial document used to legally declare how many shares of stock a person owns in a company. People who own shares of stock in a company (hereafter called Shareholders or Stockholders) participate in the management of the company and may earn money through the company’s profits through dividends.

It is important to understand that for essentially all companies, stocks (also called shares) represent partial ownership of the company from its assets to its operations. Traditionally, the greater the percentage of stocks of the company that shareholder holds (relative to the total number of stocks or shares sold by the company in question), the more influence they hold over the company’s decisions and operation, and the more they will earn from the dividends resulting from the company’s profits.

Companies sell stocks in order to raise funds that they need to continue operating. There are two types of stock: Common stocks, which entitle the owner to vote at shareholders' meetings and to receive any dividends paid out by the corporation, and Preferred stocks, which do not (generally) grant voting rights but grant a much higher claim on assets and earnings than common stocks.

Companies can, at any time that they need to raise additional funds, release new stocks for sale. Doing so dilutes the ownership and rights of already existing shareholders unless they themselves buy the new stocks. A company may also engage in stock buybacks, wherein the stocks that they sold are bought back at a particular price. This benefits existing shareholders that keep their own stocks as it causes their shares of stock to appreciate in value.

Stock Certificates serve as proof that a shareholder is who they say they are, and how much stock they hold within a particular company. Such documents are important for the purposes of not only determining who the shareholders are within a company (and therefore whose consent may be required in order for particular actions to be taken), but also to illustrate how the profits of the company will be distributed through dividends, and to show how authority and decision-making may be split within the company.

For this Stock Certificate Template, a transfer (sale) of shares may also be declared in the Transfer Section.

Stock Certificates do not expire, though they may lose value or need to be changed in order to reflect any changes in the amount of stock held by a given shareholder. This has been made easier in more recent times due to many stock certificates being issued as electronic files, though some companies will still provide physical copies of the form while keeping an electronic copy for backup purposes.

Who needs to use a Stock Certificate?

A Stock Certificate Form will need to be filled out by a representative of the concerned company and the shareholder in order to properly certify how many shares of stock the shareholder owns. The stock certificate itself can then be used for various purposes that require confirmation of a person’s shareholder status.

The Transfer Section may also be needed in order to properly record any transfer or sale of stocks. Make sure to keep in mind the laws of the state surrounding the transfer or sale of stocks.

How to fill out a Stock Certificate?

The Stock Certificate PDF is a very simple form to fill out. Make sure to download the form in PDF before printing it to ensure that all information entered and the format of the form will remain intact even after being printed or otherwise submitted to the relevant person or entity.

Make sure that all of the information entered on the form is updated and correct. This will help to avoid any issues with the proper filing of the form.

Stock Certificate Number

Enter the number assigned to this stock certificate.

Shares of Stock

Enter the number of shares of stock that the shareholder owns.

Company Name

Enter the name of the company that the shareholder holds stock in.

Incorporated Under the Laws of the State

Enter the state under which laws this certificate was incorporated and will be subject to.

Name of Shareholder

Enter the full legal name of the shareholder.

Number of Shares Owned

Enter the number of shares the shareholder-owned.

Share Value or Type

Check only one of the following boxes, whichever one applies best to the stock:

• No Par Value
• Common Stock (insert the name of the company in the space provided)

State of Company

Enter the state where the concerned company operates.

Terms

This section declares that this certificate and the shares represented by it will be held subject to all the provisions of the certificate of incorporation and the bylaws of the corporation and any amendments to either. Should any stockholder or shareholder wish to have a copy of a statement detailing all of the rights, preferences, privileges, and restrictions that are granted to or imposed upon them, they may receive one upon request and without charge from the company.

Witnessed By

President

Enter the name of the company president.

Secretary

Enter the name of the president’s secretary.

Date Signed

Enter the date when both the president and secretary signed this form.

President’s Signature

Have the president of the company sign the form in the space provided.

Secretary’s Signature

Have the secretary sign the form in the space provided.

Transfer Section

This section concerns any transfer or sale of stock.

Seller’s Name

Enter the name of the seller of the stock.

Stockholder Name

Enter the name of the stockholder to whom the shares of the stock were transferred or sold.

Number of Shares Transferred or Sold

Enter the number of shares transferred or sold.

Date of Transfer or Sale

Enter the date when the transfer or sale of the shares occurred.

Seller’s Signature

Have the seller sign the form in the space provided.

Tips when filling out a Stock Certificate

Filling out a Stock Certificate form is very simple. However, it is important that all of the information entered is correct and updated, so as to avoid any issues that may arise from the wrong information being entered in the form.

Keep the form in a safe and secure place. Make sure to store the accomplished form in an organized and secure area. This will help to make sure that it is available to consult when needed, and that issues such as identity theft and fraud are avoided.

Practice good contract management. Create multiple copies of the form, and store the original copy in a safe and secure area. This will be useful for future purposes of any kind, as well as for backup purposes should something happen to the original form.