How to Issue New Shares of Common Stock

Decide on the funds that are needed. This will help you decide on how many shares of stock to issue. The price of the stock will be based on the price of your company's stock that is already on the market or on an investment banker's view of how much the stock is worth after doing a thorough check of the finances and operations. The investment bankers are referred to as underwriters. If you have not issued any stock yet, the price is based on the amount set when your corporate application was filed with the Secretary of State's office.
Obtain approval from the board of directors to issue new stock to the public if you are already in operation. If just starting out a business, approval is not needed, and in most cases a board of directors will not be set up yet.
File a registration statement. This is obtained from the SEC. On the statement, besides the basic company information, you will need to state how many shares of common stock you want to issue. You must file at least 20 days before you are going to release the stock.
Notify investors if you are searching for a quick sale to one entity or want an investment bank to buy the stock and reissue to the public for you.
Offer shares to shareholders. This is another option with the issuing of the new stock. You may offer shares based on the percentage of shares that each person or entity already owns.
Allow the issue of stock to go public once the application is processed. If you prefer to have a public sale instead of allowing the stock to go to shareholders, investors, or banks, then allow the stock to be sold on the open market after the SEC approves the application.

How to Become a Private Stock Broker (5 Steps)

Begin in high school by taking mathematics and economics courses. Being a successful private broker requires years of practice that allow one to develop insights into how the markets operate under various conditions. Starting at an early age provides more time for these skills to develop. Join your high school's investment club, if one is available. Use pretend money noted on paper to practice different investment strategies. These activities will help develop the skills you will need as a private broker.
Obtain a college degree. Most private brokers obtain a degree in finance or economics. A Bachelor of Science degree is common, although staying long enough to obtain a Master's degree will make a significant difference in the amount of money you will earn in a post-graduate world. Those who wish to entertain corporate clients might also wish to obtain a secondary degree in business administration.
Obtain proper licensing to conduct business as a private broker. The first step is to pass the General Securities Registered Representative Exam. More commonly referred to as the Series 7 exam, this test is administered by the National Association of Securities Dealers, and is required to be employed as a broker anywhere in the United States. Many individual states will require additional credentials. To meet the criteria of these locations, you will also need to pass the Uniform Security Agents State Law Exam, also known as the Series 63 exam, and the Uniform Investment Advisor Law Exam, also know as the Series 65 exam.
Apply to a brokerage house to build experience and clientele. Brokerage houses often hire large numbers of recent graduates with the expectation that many of them will not last more than a year under the pressure of the job. Working for a brokerage house allows you to use name recognition to build a portfolio of clients. It also gives you real-world working experience that will help prepare you for any exams that are required to obtain additional accreditation.
Start a private practice. After working at a brokerage house, you will eventually reach a point where you have learned the skills that are required to operate independently. Reach out to the clients and contacts that you have made while working at other companies, inviting them to look over your new practice. Operating your own private practice allows you to continue offering the same brokerage services to clients, with the primary difference being that you will keep a full portion of the trading profits rather than being paid a commission from another brokerage house.

How to Read a Stock Certificate

Look for a box with the word 'number' in it. The number uniquely identifies the certificate and is used to track ownership. Often there are two or more boxes with the number on the front of the certificate. The CUSSIP number, assigned by the Securities Exchange Commission (SEC), is also printed on the certificate. It identifies the stock as a security registered with the SEC. Confirm the type of stock the certificate represents by looking for the words 'preferred' or 'common.' The type of stock determines shareholder privileges such as voting rights and the amount of dividends received.
Feel the embossed corporate seal and read the name of the company. The name and seal may change over time as companies merge or acquire one another. The state the company incorporated in is often included near the name. Since certificates represent ownership, some companies add attractive pictures, logos or designs to represent the organization. Collectors frame and gift stock certificates, not for the value of the shares, but the design on the front.
Learn the owner of the certificate by reading the shareholder's name. The owner is as of the date printed near the name. If the shareholder were to change names (after marriage for example), either the certificate would be reprinted with the new name or a stock power identifying the old and new names would be necessary to sell the certificate.
Determine the number of shares the certificate represents by reading the number printed next to the name or in a box marked 'shares.' Certificates used as gifts or purchased by collectors often represent only one share. In this case the share amount is listed multiple times one after another as a matrix. The number of shares printed may become inaccurate as the result of stock splits. To determine if this is the case, compare the date on the certificate to company the stock's split history. Certificates can be reprinted with the adjusted number of shares.
Understand the par value of the shares by reading the 'par value' amount. The issuing company assigns this amount at the time the certificate is issued. The current market value of the shares is determined by its most recent buy and sell prices on the exchange where it is traded.
View the back of the certificate to determine if it has been endorsed, transferring ownership of the stock to either another person or to a brokerage firm to convert to electronic ownership. The form includes a space for the original owner to sign and indicate the new owner.