0US1 Stock Certificates & Ballots. Protect Yourself. 2

Stock Certificates & Ballots Legal Forms

Corporate stock certificates and ballots.

Popular - Corporate stock represents the money or property that is invested in a corporation. It is a representation of the share of ownership in a corporate business. When a corporation files its Articles of Incorporation with the state, it states how many shares of stock it will be authorized to issue (for example, 500 shares). When the authorized shares are sold or transferred to a shareholder for something of value (money, property, or labor), the shares are said to be “issued and outstanding.” All of the authorized shares need not be issued.

The ownership of the shares in the corporation is then evidenced by a stock certificate describing the number of shares owned. The value of the shares can be a specific “par” value (for example, $1.00 per share) or they can be “no-par” value, which allows the board of directors to fix the value of the shares by resolution. If the shares are given a par value, the stock must be sold for at least the stated par value. The concept of par value is gradually being eliminated from modern business corporation acts, allowing board of directors discretion to fix the value of the shares. All states allow the use of no-par stock.**

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