{"id":16486,"date":"2023-01-25T09:38:00","date_gmt":"2023-01-25T09:38:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=16486"},"modified":"2023-01-25T20:40:37","modified_gmt":"2023-01-25T20:40:37","slug":"share-certificate","status":"publish","type":"post","link":"https:\/\/businessyield.com\/bs-investment\/share-certificate\/","title":{"rendered":"SHARE CERTIFICATE: Overview, Templates, Rates, Formats(+Quick Tool)","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

It is vital that you obtain a share certificate when registering a new company. This certificate is an investment tool that helps you to earn higher dividends than a traditional savings account. The longer you save, the more you earn. This article is a quick tool highlighting its overview, templates, rates, format, as well as how a share certificate calculator works.<\/p>\n

Overview<\/span><\/h2>\n

A Share certificate is a written document that is attested on behalf of a firm or corporation. It acts as legal proof for ownership stating its number of shares. Also, it can be called a \u2018stock certificate\u2019. Or you can equally refer it to a document issued by a company evidencing that the person\u2019s name in such certificate is the owner of the shares of the Company as stated in the certificate.<\/p>\n

Therefore, if a firm issues stocks in the market, investors who purchase them are given shares. Share certificates act as the receipt of purchase indicating the ownership of stocks in a particular company. However, the following companies can use these documents.<\/p>\n

Private Company Limited by Shares<\/strong><\/span><\/h3>\n

The phrase \u201cLimited by shares\u201d means that the liability of the shareholders to creditors of the company is limited to their original capital.  It refers to a company which liability of its members is limited to the amount (if any) unpaid on the shares held by them.<\/p>\n

Conversely, it means that in the event of dissolving the company, the members are only responsible for paying unpaid shares (if any). Also, this type of company does not offer its shares to the members of the public. Its main advantage is the limited liability of shareholders.<\/p>\n

Unlimited Liability Companies<\/strong>. <\/span><\/h3>\n

Consequently, this company allows its members or shareholders to have joint responsibilities in covering all depts (if any) irrespective of their capitals. Furthermore, an unlimited company presents ahigher risk than a limited company.  However, their finances of an unlimited remain private, and therefore, it may be a preferable business structure.<\/p>\n

Thus this means that an unlimited liability company has no restriction on the responsibility of the members of the company. In addition, its members are responsible for all the debts of the company until the debts are fully cleared.<\/p>\n

Public Company Limited by Shares<\/strong>.<\/span><\/h3>\n

This is a limited liability company that offers shares to the general public<\/strong> and has limited liability. Besides, a PLC offers shares to the general public through trading on the stock market.<\/p>\n

Likewise, It similar to the private company limited, but it can invite the members of the public to subscribe to its shares as stated above. In fact, there is no limit to the membership of the company.<\/p>\n

What’s the Difference between private and public companies?<\/span><\/span><\/h3>\n

There are some key differences between private and public companies in terms of their operation. Below are Some of the main differences between private limited companies and public limited companies.<\/p>\n