How to Word a Stock Certificate

Stock certificates are proof that a party owns a portion (shares) of a corporation. The ownership is through purchase of stock in return for rights to share in the profits of the company as long as the party owns the stock. Small corporations just starting out may need to write their own stock certificates if they cannot find a suitable template to use. Certain items need to be included on a stock certificate for it to be deemed valid.

Write the certificate number on the upper left-hand corner of the paper.

Write the number of shares the certificate is valid for. This can be either across from or underneath the certificate number.

Write the type of shares. These can be common stock, Class A, B or any other usual designation.

Write the name of the corporation and the type of corporation.

Write a statement certifying that the person named is the official holder of the certificate. This is the first paragraph of the certificate. Include the number and class of shares being issued in the first paragraph. Include wording designating the named person as the only authorized person to transfer ownership of the stock to another person.

Write a statement that creates a connection to the stock validity to the Articles of Incorporation of the issuing corporation. This is the second paragraph. Include wording that the certificate is still in force should any amendments be made to the articles or the bylaws of the company.

Write the third paragraph as a statement of location for any documentation connected with the stock certificate. The location is usually at the corporate offices and documentation can be available during normal business hours.

Write the witness statement that authorizes issue of the stock certificate. Include the month, day and year. Include who is signing and their position with the company. Place the signatures under this statement.