Showing posts with label authorized. Show all posts
Showing posts with label authorized. Show all posts
Thursday, August 20, 2015
How to Trade Indian Stock Market?
Buy directly on the Indian Stock Exchange. This option only applies to Indian citizens living in India. If you're an American citizen, this isn't an option for you, even if reside in India. If you're an Indian citizen, you can buy and sell stocks through Indian financial institutions, as you can in America, by placing orders and waiting for executions.
Register a Portfolio Investment Scheme. Available through banks that are authorized to trade on the Indian Stock Exchange, Portfolio Investment Schemes (PINS) are required for non-resident Indian citizens to buy and sell on the Indian Stock Exchange. The PINS option is not available to U.S. citizens.
Place trades through the bank holding your PINS. As a non-resident Indian investor, you can give buy and sell orders to the bank holding your PINS much as you would buy and sell a stock on an American exchange. The bank will execute the order for you and provide you with a confirmation.
Buy American Depositary Receipts (ADRs) on an American stock exchange. This is the most accessible way for American citizens to buy Indian stocks. ADRs are foreign securities that have been packaged to trade on American exchanges in an almost identical fashion to American stocks. Examples of Indian ADRs trading on American exchanges are Satyam Computer Services and Infosys Technologies, trading under symbols SAY and INFY, respectively.
Buy Indian mutual funds. While not directly buying and selling on the Indian stock exchange, you can get access to a diversified portfolio of Indian stocks by purchasing a mutual fund dedicated to Indian securities. The India Fund, for example, trades as a closed-end mutual fund on the New York Stock Exchange under the symbol IFN.
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Wednesday, August 19, 2015
How to Issue a Stock Certificate
A stock certificate represents proof of ownership or investment in a corporate financial entity. All forms of corporations, including the limited liability corporations (LLC), partnership, including limited liability (LLP), and limited partnership (LLP), should receive a certificate. An LLC certificate is called a membership certificate. The LLP and LP are called partnership certificates. A stock certificate proves ownership and thus should be carefully held by the investor.
Review the number of authorized corporate shares. This material is available in the articles of incorporation. It may also be found through the public records of the Secretary of State in the state of issuance. Issue shares for less than half of all the authorized shares so that additional members added in the future do not require a new authorization of shares by existing shareholders.
Calculate the percentage ownership of each shareholder. Allocate the appropriate number of shares based on the percentage ownership and the number of shares to be issued. For example, a shareholder owns 10 percent of a recently formed company. There are 200 shares authorized and 50 shares to be issued. The shareholder will receive stock certificates for five shares.
Each stock certificate should include the name and number of shares of the stockholder. The certificates, readily available online or in stationery stores, should include a certificate number so changes in share ownership can be easily transacted. Never change the number of shares on a certificate. A purchase should result in additional certificates being issued or the old certificate being retired and a new certificate created.
A listing of all shareholder information, including name, address, shares held and certificate numbers, should be entered into the articles of incorporation. Another copy should be kept in a separate place where it can be quickly accessed by the secretary of the company. A certificate should be sent by certified mail to each shareholder.
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