Stock Certificates
Money has become essential for one to afford almost everything and basic needs needed for a comfortable life. 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. Shareholders are provided with stock certificate to prove their ownership of part of a public company. Companies can raise money to expand or give better services by selling a part of itself to investors who become partial owners of the company. 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.
Initially, these certificates were given in paper form which was uniquely designed for each person buying the shares. Each certificate was designed and included with credentials including names, identification number and the date that the certificate was issued to the holder. Watermarks, seals and several signatures were included in the certificates making them unique and impossible to duplicate or forge. Before being given the profits, the company first checked for the authenticity of the certificate to avoid fraud. As time evolved, there has been the introduction of digital forms that have replaced these stock paper forms used initially.
The companies usually manage the certificates and ensure to keep track of all processes done through the certificate into computing systems. A lot of tedious work has been got rid of by the digital forms since no printing or filing is required unlike in past times. Although it has been digitized, some clients prefer the old means of hard copy certificates and they can be provided with them upon such requests. Usually a shareholder can only have one form of the certificates either the digital form or paper stock form but not the two of them at once. 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. Optionally, one can decide to get the certificate themselves from the company where no intermediary is involved. Transfer agents which are institutions like banks can also be used as intermediaries between clients and the companies to acquire the stock form. The online available of these forms make their management easier because access is not limited by location or time. A a client should counter check prices charged by various brokers before hiring them to get the fairest charging brokers.