5 Reasons Why You Might Need Paper Stock Certificates

6th Oct 2021

5 Reasons Why You Might Need Paper Stock Certificates

There are a variety of reasons why you might need paper stock certificates. Check them out here in this short rundown on the subject.

A young stockbroker named Jon Herzog once bought a paper stock certificate from an old oil company. Although he paid only $5 for it, he later discovered that it was worth more than $100,000!

Of course, people value paper stock certificates for more than just the connection to history that old ones can provide. These days, stock certificates provide a number of benefits to participants in the financial market.

So what exactly can you get out of using paper stock certificates? Read on to learn all about stock certificates and the benefits if they can provide to you!

1. You Can Use Stock Certificate Templates to Create Customized Certificates

Many people simply end up hiring experts to manage the legalities of the financial and business world. However, if you want to create your own stock certificates, then using a stock certificate template is an efficient way to manage it on your own.

These templates fill in the important legal details, leaving it to you to fill in a few facts about your company and choose the design. Many people enjoy designing a certificate that reflects the values and meaning of their company.

After filling out a few paper certificate templates, you are also likely to get in a greater understanding of the legal meaning of the document.

2. Physical Stock Certificates Are Great for Small Businesses

Although blank stock certificates are out of fashion for large corporations, many small business owners still find a lot of value in them.

There are a lot of advantages to electronic communication, but privacy is not one of them. At the end of the day, sending your information through the internet means potentially giving the whole world access to it. There are a rising number of cybercriminals and a shrinking number of criminals who target paper documents.

Small companies often enjoy the privacy and discretion that they can get with physical stock certificates. They also use their certificates to register their sales with the government. This is an effective way to keep careful track of all of these shares that you own and all of these shares that you have sold.

3. Stock Certificates Provide People With Proof of Ownership

The government has long accepted stock certificates as proof of ownership of stock shares. It often surprises people to find out that many institutions are still slightly suspicious of electronic documents. There is a reason that institutions prefer to see your physical documents rather than to just look at pictures of them.

At the end of the day, electronic documents are easily tampered with. Anybody with a little bit of photoshop can change the numbers and letters on an image that purports to be the representation of a real physical document.

None of these problems are present with paper stock certificates. When you need to prove ownership, you can do so instantaneously by displaying your paper stock certificate. This can accelerate your transaction processes and take some of the stress out of conducting business.

4. Paper Stock Certificates Can Supplement Electronic Documents

Of course, there are ways to use both physical and electronic documents together. In fact, in many situations, the more documents that you can use to prove your identity and ownership, the better.

In these cases, physical stock certificates are just another way to prove your legitimacy beyond a shadow of a doubt.

There is also a certain reliability to paper documents that the digital world still cannot imitate. Digital documents are ultimately prone to server crashes, dying batteries, and more. Paper documents are perfectly stable and are not subject to any of these problems.

5. Physical Stock Certificates Are Great Mementos

Although physical stock certificates are all about tangibility, they also provide intangible values. At the end of the day, people feel much more strongly about physical objects than they do about digital objects.

There is a reason that physical stock certificates sometimes sell for more than $100,000. They are a connection to history. They have passed through the hands of real people and been treasured and fought for.

On top of that, they are more likely to have elegant designs. It is hard to overestimate the value of symbols, and physical stock certificates are a powerful symbol of financial ownership.

Many people wonder how to get stock certificates in an increasingly digital world. There are still quality companies that provide paper stock certificates. The right company can allow you to choose your own design and lean on templates to help you cover all of your bases.

You can check out stock certificate examples by following this link.

Enjoy All of the Benefits of Paper Stock Certificates

We hope that you were able to take away something helpful from this brief article on a few of the benefits of using paper stock certificates. At the end of the day, this is a tried-and-true financial technology that has a lot to offer.

If you don't already know about stock certificates, then it can seem daunting to learn about them at first. However, education about stock certificates is an investment that will pay off over and over again for years to come. It is more than worth taking the time and effort to make sure that you understand all of the benefits that you can acquire by using paper stock certificates.

To learn more about paper stock certificates, where you can acquire them, and to learn about other things like the supplies you will need for a last will and testament, check out our other articles