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How to Issue Stock

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Summary: If a business needs to raise capital, they can issue stock to people who will receive shares for future profits in return. Issue stock by determining the amount of shares and their worth with tips from an investment professional in this free video on financial planning.

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By Phillip Beningoso
eHow Presenter

Phillip Beningoso has a four year BA degree majoring in finance and minoring in economics and computer sciences from Kent State University. Federal Licensing included Series 63, seven,...read more

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Video Transcript

"My name's Phillip Beningoso, I'm an investment professional, and I'm going to be discussing how to issue stock. If you need to raise capital for a business, you can issue stock to people who receive shares for future profits in return. Let me take you through a few quick steps that will help a business in issuing stock. Step one is determine the number of shares of stock you will issue each owner. Two, know that each share is worth a proportionate amount of the company's total net worth. Three is to decide what class of shares you will offer. There's many types, preferred common, and the preferred can even be convertible. Step four, hire a printer to print the stock certificates. Step five, issue certificates to the shareholders. Step six is to establish a shareholder agreement, also known as a buy-out agreement, dealing with issues relating to stock ownership. And seven, insure the shareholder's spouse a sign it agreement if the shareholder's live in states in which community property laws govern joint ownership of the property. And eight, consider selling shares to event your capital firm, or a brokerage firm, by means to which to raise capital, because they can get involved in the process, and make the marketing much simpler. The information provided here is for general informational purposed only, and should not be considered an individualized recommendation, or personalized investment advice. Any investment or strategies mentioned here may not be suitable for everyone. My name's Phillip Beningoso, and I'm an investment professional."

eHow Article: How to Issue Stock

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