Ownership in a corporation is divided into shares and each corporation will decide how many shares should be issued and at what price they will sell their shares in the market. Only corporations have the right to sell stocks and issue stock certificates as proof of ownership. Any other forms of business such as sole proprietorships, partners or limited liability companies are not required by law to issue stock certificates or sell shares of the company.
Stock certificate is a proof of ownership of shares in a corporation. They imply that the holder of stock certificate has an ownership in a corporation and they convey certain rights and privileges to the person who holds them. There are many different forms of shares that are provided by corporations and all of them provide stock certificates as proof of ownership or equity in the corporation.
Having stock certificate permits you to attend an annual general meeting of the corporation, to vote on shareholder propositions, to vote for the officers of the corporation and to ask questions of the management of the corporation about any of their actions regarding the company.
What does Stock certificate represent?
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