Your framed stock certificate’s sitting pretty on the wall of your study or on a shelf in your den, and one day you pause to think: what do all those numbers and signatures mean? It’s our “Anatomy of a Stock Certificate” post to the rescue. Here are some of the most prevalent terms demystified:
- Stock Number: This code is unique to each stock certificate – it’s like a one-of-a-kind fingerprint for your shares. It’s used to track stock when it’s traded and sold.
- Par Value: While the concept’s seldom relevant with today’s market regulations, the “par value” refers to a minimum trading price set by the company. Nowadays, you’ll seldom see more than $.01 (and often you’ll see “no par value” at all).
- Number of Shares: If you got your share through OneShare, chances are pretty high you’ll have a nice no-nonsense “1” in this space – but the number can generally be in any amount (within reason)
- CUSIP Number: Another unique identifying number, this one’s issued by the Committee on Uniform Securities Identification Procedures for certificate tracking purposes.
- Bank Note Manufacturer: Credit where credit is due: this is the name of the manufacturer who produced the special stock-certificate-grade paper for your certificate.
- Signatures: Most certificates are signed by representatives from within the company – usually a CEO or Chairman of the Board – as well as by the registrar. The registrar signs the document when the stock is issued, making the whole process official.
- Stock Date: This is your stock’s birthday! It’s the day your share was officially transferred to your name.
How about you? Is there anything you’ve always wondered about on your stock certificate?
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Tags: CUSIP, par value, stock date, stock number