Do we need to issue paper stock certificates? Can electronic stock certificates be used?

April 26, 2015 Business FAQs

No – a company can issue electronic stock certificates, or no certificates at all, if the corporation issues uncertificated shares.

In the past, actual paper certificates were used to prove ownership in a company. However, today, the use of electronic filings has largely made official stock certifcates unnecessary. It is no longer necessary to have paper stock certificates. Companies regularly issue electronic certificates or no certificates at all (through notices of issuance of shares / uncertificated shares).

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