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September 10, 2019

Pets & Animals

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Getting Partial Ownership Of Companies

Everyone is determined to make money for their upkeep in various ways through investing and getting hired for some jobs. There are various ways that can earn a person money for upkeep other than the common means used by many people all over the world. Shareholders are provided with stock certificate to prove their ownership of part of a public company. At times a company may decide to become public and they invite people to buy shares of the company to raise more money to run the business. Persons are presented with the certificate so that they can use it to claim dividends gained by the company in the future. This is a great opportunity to invest since the business may end up being very successful resulting to large amounts of profits for the shareholders.

After buying the shares, clients were usually given the stock certificate which was a document in paper form but uniquely designed. Each certificate was designed and included with credentials including names, identification number and the date that the certificate was issued to the holder. It was designed to be difficult to forge through incorporating other things like seals and watermarks unique to the company and the investor. When claiming dividends from the company one had to present these documents to verify their details to ensure they were actual shareholders. Time has changed and as such these certificates are being given in digital form rather than the previous hard copies.

In the digital certificates, a company keeps a record of transactions carried out for the certificate in computers. It is easier dealing with such digital forms known as book-entry since it eliminates the extra work needed to print and file paperwork. Although it has been digitized, some clients prefer the old means of hard copy certificates and they can be provided with them upon such requests. Shareholders are only allowed to use only one of the two forms but not both at the same time. To claim a paper stock form, one can use various channels such as going through a broker to arrange for it to be made.

Brokers are important in such deals as they act as links between clients and their respective companies and carry out tasks on behalf of the clients. Optionally, one can decide to get the certificate themselves from the company where no intermediary is involved. Transfer agents which are institutions like banks can also be used as intermediaries between clients and the companies to acquire the stock form. The process of managing stocks is easier nowadays due to their availability online making them accessible at all times from anywhere. Different brokers charge different amounts of fees for their services.