A stock represents how much of the company is yours. If you have a stock, you wield a percentage of the corporation’s assets and profits. The worth of your stock goes up as the business grows, and decreases if the business doesn’t do well and loses value. You can buy as many stocks as the company is willing to distribute—and the more stocks you have, the more of the company you actually own. It doesn’t necessarily mean that you can make decisions on daily company operations, or that you have the right to any of the physical assets the company owns, or that you are personally liable for anything. In that regard, you’re not actually an owner of the company.
Stockholders may have the power to cast a vote on major concerns affecting the corporation, such as affairs regarding company assets and mergers. Stockholders may also sell or trade stocks, or keep them and be paid regularly (usually on a quarterly basis) from company profits or reserves. Stockholders may also have the right to review the corporation’s books and records and sue the entity for wrongful actions. Ultimately, stockholder rights may depend on the terms and conditions of the stock certificate. If you own or are starting a business, it would be a very smart move to get a reliable attorney on your side to help you create a stock certificate that’s worth the paper it’s written on.
Spiegel & Utrera, P.A. offers complete business formation services, years of experience that can’t be matched by many and the best price out there. Having us prepare your stock certificate over a non-attorney will ensure that all of your bases are covered with free legal advice. Free stock certificates are included in our complete incorporation package.
