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 Calculate Net Income Based on Stock Price

Visit any financial website that gives stock information and find a company’s P/E ratio, price per share and number of shares outstanding, which is information that a financial website provides for all public companies. For example, assume a company’s P/E ratio is 12, its price per share is $20 and it has 1 million shares outstanding.
Substitute the values into the P/E ratio formula: P/E ratio = price per share/(net income/shares outstanding). In this example, substitute the values to get 12 = $20/(net income/1 million).
Multiply both sides of the equation by the right side’s denominator. In this example, multiply both sides by (net income/1 million) to get 12 x (net income/1 million) = $20.
Divide the company’s P/E ratio by its total shares outstanding. In this example, divide 12 by 1 million to get 0.000012. This leaves 0.000012 x net income = $20.
Divide the company’s stock price per share by your result to calculate its net income over the past 12 months. In this example, divide $20 by 0.000012 to get approximately $1.7 million in net income over the past 12 months.

How to Cash an Old Stock Certificate (6 Steps)

Examine the stock certificate. It contains the information you need to find the company that issued it. You need the full company name plus the “CUSIP” number. The number is a unique identifier your broker can use to help track down the company, even if it now does business under another name. Also make a note of the owner of record and of the incorporation location (the state that issued the charter of incorporation).
Check financial websites such as Yahoo! Finance (which has business listings free to examine) or Dun & Bradstreet (which charges a fee), or even in your public library. If you find the company name listed as an active business concern, you’re well on your way.
Call or write the state agency in the incorporation state (usually the secretary of state) as a last resort. They will have records of the original articles of incorporation and can tell you if the company changed its name, moved out of state or is defunct.
Contact the company’s transfer agent if the business still exists. Transfer agents are firms that handle the stock certificates and transactions on behalf of publicly traded companies. Find out what their requirements are for you to transfer ownership of the stock to yourself and what documents are needed to verify you are entitled to the shares.
Follow the transfer agent’s instructions. For example, you may be asked for a copy of a probated will that names you as beneficiary. Once everything is in place, fill out the transfer of ownership form located on the back of the stock certificate and sign it in the presence of a notary public.
Send the stock certificate and required documentation to the transfer agent via certified mail. Once the agent credits the shares to you as a registered stockholder, call your broker or transfer agent and place a sell order for the shares to cash in that old stock certificate.