Stock Certificate

Stock Certificate. Even in the cyber age, stock certificates have importance. Here's why.

Lost Stock Certificates

If you lose a stock certificate you will need "The Affidavit of Lost Stock Certificate." Once you receive the affidavit, as well as a bond, when the company requires it, the company will then issue a replacement certificate.

This Affidavit can be used by any kind of stock owner. It may be used if the stock is owned by an individual, corporation or partnership. You may also use it if you are trying to get stock reissued concerning an owner who is deceased.

Once you have lost your stock certificate, you can first contact the issuing company to advise and ask for further instructions. You can call the corporation's headquarters and ask for their "investor relations" department. They will either help you, or refer you to the company's transfer agent. Big companies with many stockholders can hire a large bank or other service company to be a transfer agent. They will handle the record keeping and issuance of new certificates when stock changes hands. With smaller companies, you can contact the corporate secretary. Some companies, when they hold publicly traded stock, may have their own affidavit form for you to use.

An ownership interest in a corporation is recorded by issuing a stock certificate by the corporation. A stock certificate provides proof that the person whose name is recorded on the certificate (or the holder, if the certificate is endorsed by the person named) is the owner of the said number of shares. It will be the books and records of the corporation that controls stock ownership questions. So, transfer of ownership is not effective until it is reflected on the issuing company's books. Stock certificates are important. Keep them in a safety deposit box or other secure place where they are not likely to be lost or stolen. "The Affidavit of Lost Stock Certificate" will be used when you lose your certificate. With it, you may request the transfer of your shares to another person, or you may request a replacement certificate.