While some of your investors may want stock certificates, issuing and distributing them burdens your company because: Disadvantages of Issuing Stock Certificates A corporate kit usually contains a handsome binder, a ledger, some stock certificates, and a corporate seal. If, however, you do want your company to issue stock certificates, you can get corporate business supplies online by using a corporate kit. Many companies encourage their investors to turn in their stock certificates, replacing them with newer indications of stock ownership. The company then mails the certificates to the investors.Ĭorporations rarely issue stock certificates anymore. It also contains the name of the company, the official signature from an officer of the company or someone in a similar capacity, and an official company seal. Stock certificate paper is a paper record that shows the investor owns the shares and how many shares the investor owns. Private companies may still issue stock certificates, but many of these companies also are switching over to either electronic or digital shares.Ī stock certificate is a piece of paper that shows that the investor owns shares in the company. While some people still want to have something tangible, such as stock certificate paper, public companies have moved to a different system of issuing their stock. If you are an owner of a corporation, one of the decisions you must make is whether to issue paper stock certificates or whether you can show investment in the corporation in another way.
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