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Common Stock Certificate

A certificate used to document each stockholder’s ownership of capital stock; it includes important notices regarding, among other things, restrictions on transfer.

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The common stock certificate evidences the shares of a corporation’s capital stock issued to an equity holder. It certifies the ownership of a specific number of shares of capital stock in a corporation and is used to document each stockholder’s equity in the corporation. The certificate may include important legends alerting the holder to certain restrictions on the shares of capital stock it evidences, such as transfer restrictions, and includes the name of the corporation, the name of the equity holder, the number of shares issued by the corporation, the date the stock is issued, an identification number, and often a corporate seal and corporate officer signatures. The certificate itself typically includes an intricate design to discourage fraudulent replication.