In the past century, the stock market has had returns of a little more than 10 percent per year.
As such, owning stock shares remains a powerful part of investing, diversifying businesses and establishing ownership in companies. When it comes to owning stocks and transferring ownership, you always need to have your legal ducks in a row.
In this regard, entrepreneurs and business attorneys should become familiar with issuing stock certificates.
You would do well to look into using a stock certificate template, rather than creating them from scratch each time. Read on to learn more about these templates and how they can serve you.
The Importance of Issuing Stock Certificates
Though we live in an increasingly electronic, digital world, issuing stock certificates is still a good idea.
Whether you're a law firm that takes on shareholders as clients or an entrepreneur that needs clean records, here are a few reasons that issuing stock certificates can be helpful to you.
1. Shareholders Will Have Solid Records for Their Portfolio
Stocks are a great way to diversify your portfolio as you build your finances.
Anytime that you're putting this kind of thought, time and money into your investment portfolio, it only makes sense to keep accurate records. When you have paper stock certificates, you are able to maintain records for all of your investments.
While you can still keep your electronic receipts from all stock transactions, having a hard copy gives you peace of mind. If there are any discrepancies with your stock ownership, you'll be in a good position to stake your claim and clear things up by having a hard copy in your back pocket.
2. They Provide a Worthy Keepsake
Aside from having proof of investment, issuing stock certificates is a wonderful idea because they create a worthy keepsake.
Establishing ownership in a business and delineating roles feels more official when you have stock certificates to show for it. Many people frame their stock certificates as a reminder of their ownership and as a motivator to build more wealth.
Since many are beginning to turn to electronic certificates, hard copies are even more valuable keepsakes than ever. When you have a template to use, you will be better able to issue a stock certificate.
3. A Physical Document Is Useful for Those That Want Something in Addition to Electronic Records
Though the world is going digital, many still prefer hard copy records.
The last thing you would want is to deal with server downtime or errors that make it difficult to access your electronic records. When you have a printed copy, you always have the peace of mind to know what you own, with the tangible proof to show for it.
4. It Is a Starting Point for Shareholder Meetings and Annual Reports
Once you have a share certificate, it begins the process of being a steward over your stock portfolio.
You will begin receiving annual reports and will have access to shareholder meetings. By having the proof that you need, you can then start educating yourself on the stocks in questions, and can remain aware and in the loop.
5. Stock Certificates Firmly Establish the Terms of a Business
When you have proof of shares ownership in writing, it firmly lets you know the ownership breakdown of the business.
Since each shareholder will have copies of their certificates, there is never a question of who owns what. If there is ever a situation in which ownership must be transferred or liquidated, these certificates will become even more important.
Why You Should Use a Stock Certificate Template
Now that you understand a bit about the importance of issuing stock certificates, it's time to find out why templates are the way to go. Consider the following and start using some templates that will help you issue certificates on your terms:
1. Using a Template Lets You Solidify Information Quickly and Conveniently
When you're drawing up contracts from scratch, you can always expect it to be time-consuming. Instead of creating these certificates on a case by case basis, having a template that lets you plug in information is a far greater use of your time.
Whether you're a law firm drawing up the contract, or an entrepreneur wanting to lay out the ownership of stock shares, your time is best served focusing on your strengths. Using a template helps you to focus on what you do best.
2. You Will Ensure That All Information Is Factual and That Important Details Are Included
Since a stock share certificate is a legal document, you need to be sure that all of the information laid out is factual and detailed.
For instance, you will need to include information like the state where your business is incorporated, shareholder name and information, date of issue, a corporate seal, registration numbers and more.
When you have a template laid out, it potentially does away with the margin of error so that you are able to create a legal agreement without the mistakes.
Make sure that you use a template that is well-crafted by companies that understand the importance of legal details.
3. It Quickly Gives People Ironclad Proof of Ownership
Issuing paper stock certificates is excellent so that you can prove ownership.
Business is conducted quicker than ever these days so you need to be sure that you have proof of ownership whenever you're ready to make a transaction. Whether you're looking to transfer ownership, liquidate your stocks or otherwise alter your portfolio, getting instant access to a certificate will come in handy.
A template expedites the process and puts more power in the hands of the shareholder.
4. Templates Do Away with Clerical Busy Work
Templates help free up so much time so that your company is more productive.
Creating a certificate from scratch is incredibly time-consuming and creates a lot of clerical work. When you use templates instead, your productivity increases and there's no wasted time in your work days.
5. Using a Template Lets You Take on More Clients
When you use templates, you are able to be more productive and efficient with your business.
Not only will your company be more productive, using a template frees up enough time to take on more clients. This improves your bottom line as a whole and helps you increase profit margins.
6. Templates Have Unique Colors and Designs
You also need to be sure that you choose the right stock certificate for your needs.
Since stock certificates are often keepsakes, templates give you a chance to add a little bit of personality to them. By using templates you can switch colors and designs with a few clicks of the mouse.
Companies like Disney for years have created beautiful certificates that feature characters like Mickey Mouse and Donald Duck. You can do much of the same for your business so that your shareholders are getting even more value out of their investment.
A beautifully crafted stock certificate, complete with an intricate design and a company seal will add a unique presence to the document.
Many people choose to frame their stock certificates, especially when initially getting a business off the ground. In addition to a fancy keepsake, you'll have tangible proof of the number of shares you owned, the date you purchased them, the stock's par value, and so much more.
Having access to these stock certificates gives you something to look back on once your company takes off and your stock prices soar. Even though you are using templates, there are a variety of ways you can customize them to your needs, which is necessary no matter what sort of business you run.
7. You Stay up to Date with Laws and Practices by Using Templates
In the legal field, it's important to stay up to date with verbiage and changes in code.
With a template, you get to update terms easily, without having to conduct painstaking research or create legal language from scratch. Companies that issue these templates often make updates to their certificates so that you remain in the loop.
8. Templates Make Reproductions and Replacements Much Easier
The last thing you would want is to not have access to your stock certificate when it's time to cash in.
If you created your stock certificate from scratch, it can be difficult to find a reproduction in a timely manner. However, with a template on file, it is much easier to get the certificate that you need so that you can complete your transaction.
9. Issues Certificates Via Template Is a Much Better Option for Small Business Owners
Though many large corporations have stopped issuing stock certificates, it still makes perfect sense for small business owners.
Stock certificates have held a long-standing place in business. In fact, they were treated as legal currency at one point, and their use has a rich 400 years of history.
These certificates still hold an important place for small businesses. While many corporations are going strictly electronic, issuing paper shares can be valuable for small businesses that want to keep their transactions more private and less open to the public.
By having stock certificate templates ready to use, you have more control over how they are issued, and can more easily outline ownership.
Having these certificates will allow you to record each sale and register it with your state. This legitimizes your business and ensures that you are aware of each and every share that you issue.
10. A Template Is Great If You Want to Go the DIY Route
Finally, templates are definitely the way to go if the legal field is not your area of expertise.
You can cut tremendous costs by going the DIY route and creating your own stock certificates, rather than hiring the help of an attorney to create some drafts. Most attorneys charge somewhere between $150 per hour and $325 per hour.
When you instead turn to the services of a template, you will save a substantial amount of money, while still getting the same end result. If you are just getting started with your business and don't quite have a lot of money to go around for overhead costs, using a template is definitely the way you will want to go.
Search for the Right Company to Handle Your Stock Certificate Templates
When you are interested in creating stock certificate templates, you will need to look into the expertise of the company that issues them.
Research how long they have been in business, and get referrals on which companies have used their certificates. By knowing that you can trust the templates you buy, it's easier to go all in when using them.
You should also shop around for the best prices on these templates in order to get the most bang for your buck. Shop around for the right package whenever you are looking for a stock certificate template, and you will be better able to get the end result you are looking for.
Get the Stock Certificate Template That You Need
As you can see, stock certificates have an incredibly important role when it comes to business. In this regard, using a stock certificate template can give you the productivity that you are looking for.
There are a number of businesses today that use templates, and for good reason. Now that you can appreciate the importance of using a template, you can enjoy these benefits by reaching out to us.
For more info, contact us and shop around for our printed stock certificates.