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Why
Own a Stock Certificate? |
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Why
Own a Stock Certificate?
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Although
it's easy to forget sometimes, a share is not a lottery
ticket... it's part-ownership of a business.
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-
Peter Lynch
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Some people have asked us
why anyone would want to own a stock certificate when the record
of ownership can be maintained electrically and the account
can be monitored through online account access. This is a very
good question, and since there is a recent trend (unfortunately)
in investment industry to move toward electric registration
system (and thus eliminating the need for stock certificate),
I would like to dedicate this article to list why I believe
there are values in owning a stock certificate.
Proof of Ownership |
As Mr. Lynch said,
owning a share of a company means being a part-owner of
the company. And what is a better way to show the ownership
of a company than a stock certificate? Sure, an account
statement from transfer agent can be used as a proof,
but having a stock certificate makes the proof much more
special.
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Some companies would
recommend electric registration instead of owning a stock
certificate because it would eliminate the concerns of lost,
stolen or destroyed certificate. Although they have a good
point (because replacing it would require paperwork, postage
to mail the forms, and a fee to issue a new one), there
is a same risk with any other assets you have in your house
(such as expensive artwork, jewelry, title of your vehicle,
etc.), and many of them are irreplaceable (while stock certificate
can be replaced). |
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Decoration |
If you have
not seen our Stock
Certificate Gallery, I hope you take a few minutes
of your time to visit. There are many companies
that put great effort in making beautiful and unique
stock certificates. And, of course, if you like
the appearance of a classic stock certificate, there
are many that still stick with the tradition. These
stock certificates would look great on a wall (especially
when it is framed) next to or in place of other
artworks, your diploma, or license certificate. |
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Unique Gift |
With all the
holidays, birthdays and other occasions that happen
throughout a year, it is sometimes difficult to
find a good gift. And it is even harder to find
if you want it to be a unique gift. Well, stock
certificate is a unique gift, and it is easier
to purchase than one might think. Try one of One
Share Stores and see how easy it can be.
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For those of
you who are willing to go extra miles to make a
gift even more special, try a fortune
cookie or a tree
to accompany the stock. |
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Sense of
Belonging, Pride |
Do you have
a favorite company? A reason can be anything - you
just happen to like their products, or you think
their characters are cute. You like it because your
family member works for the company, or the company
remind you of a fond memory. Whatever the case may
be, owning a stock certificate will give you a warm
feeling that you are part of them. |
Also, a stock
certificate is an excellent way to promote sense
of belonging to the employees. Many companies offer
employee investment programs for employees to invest
in the company's shares, but I bet giving an actual
stock certificate to represent their part-ownership
would win their heart. |
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Long-Term
Investment |
If you are
thinking about a long-term investment, but are not
sure if you can fight the urge of wanting to sell
in a few months, or if you want to give a gift of
shares to someone (like your child), but don't want
the recipient to turn around and sell it, stock
certificate is an excellent way to encourage the
long-term investment. |
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Frankly, stock certificate
is not for everyone. If you are a short-term investor, or if
you want to sell the shares quickly at the specific price, owning
a stock certificate would not work too well for you. However,
for those of us who purchase stocks for more than just a quick
way to make money, a stock certificate can be a great asset.
And if the company discontinues
the issue of stock certificate, or if the company itself dicontinues
its business, let's hope that the stock certificate revives
itself as a scripophily.
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