How to Make a Stock Certificate (4 Steps)

Draft the wording for the front and back of the certificate. On the front side, include your company’s full legal name, the name of the person to whom you’re issuing the stock, the number of shares the certificate represents and the issue date; leave a space for the business owner or corporate officers to sign. On the back side, summarize 'fine print' legal rights and limitations. For example, explain that there is a waiting period between when an employee receives stock as part of a private company's stock option and can sell it.
Set the page orientation of an 8.5-inch by 11-inch sheet of 32-pound paper to landscape, as most stock certificates run horizontally across the page. Then set page margins as wide as possible, about 0.5 inches on all four sides. Choose the center alignment option so the certificate has an equal amount of white space on both sides. Turn on paragraph marks using the show-hide option if you need help with spacing or placement. Once you finish the first certificate, save it as a template.
Find a border using the Borders and Shading or the Clip Art feature in your word processing program, or visit websites such as PDClipart.org or FreePrintableBorders4U.com that offer free downloadable borders. Follow the Walt Disney Company’s lead and include a unique background that allows you to use a stock certificate as a branding tool. Although you most likely don’t have the option to include drawings of famous characters like the Walt Disney Company does, you can include your company logo, a picture of your facility or pictures of your products or services. Insert background images as watermarks to make sure the background doesn’t interfere with foreground text.
Select an appropriate font and font size. Stock certificates commonly use a cursive or script-style font such as Old English, Script or Calligraphy for the business name and title, and a standard font such as Times New Roman or Arial for the remaining information on the front and the back. Choose no more than one or two fonts to avoid a cluttered appearance. Set the font size to about 48 points for the title and 11 points to 14 points for the body to make sure all the information is clear and readable

How to Record Stock Options on a Balance Sheet

Record the periodic cost allocation of the stock option. The periodic cost is the value of the stock options divided by the number of service years. Record a journal entry that debits 'compensation expense' (this expense is reported in the income statement) and credits 'additional paid in capital -- stock options' (a stockholder's equity account reported in the balance sheet). Record this cost annually throughout the employee's vesting period.
Record the exercise of the stock option. When the exercise date arrives, the employee can exercise the option and purchase the company's common stock at the exercise price. Common stock is valued at par, a designated dollar amount used to value each share of common stock on the balance sheet. When common stock is sold or repurchased, it is usually for a price above the par value, so the excess amount over par is credited to an 'additional paid in capital' account. The journal entry to record the exercise of the option involves debiting 'cash' for the number of shares purchased multiplied by the exercise price. In addition, debit 'additional paid in capital -- stock options' for the balance accumulated in the account over the vesting period and credit 'common stock' for the number of shares purchased multiplied by the stock's par value. The remaining credit is made to 'additional paid-in capital in excess of par (common stock)' for the amount needed to balance the journal entry.
Record the expiration of the options, if applicable. If a stock option is not exercised on its exercise date, it will expire or sometimes only some of the shares offered by the option are purchased. If the options expire, the balance in the 'additional paid in capital -- stock options' account needs to be transferred to 'additional paid in capital -- expired stock options' account. By debiting the stock options account and crediting the expired stock options account, the cost is reclassified within the stockholder's equity section of the balance sheet. When a portion of the option shares are exercised and a portion expire, allocate the costs as explained in steps 2 and 3 based on the number of shares purchased and the remaining value of the option that expired.

How to Calculate Outstanding Shares of Stock

Determine the par value of the share. The par value of the share is listed under stockholders' equity on the balance sheet. For example, Ricky Rat Corporation has a par value of $4 per common share.
Determine the value of the listed share on the balance sheet. This is a number listed under each year. Determine the year you want to calculate and look at the corresponding line underneath the year on the balance sheet. For example, Ricky Rat Corporation's common share is listed as $20,000 on their balance sheet.
Divide the listed share's value by the par value of the share to find the number of shares outstanding. For example divide $20,000/$4 = 5,000 shares.