Does one stock certificate represent one share of stock?
One stock certificate can represent any number of shares up to the amount authorized on the Certificate of Incorporation. If necessary, at a future date the Certificate of Incorporation can be amended to allow the corporation to insure additional shares of stock. 8) What is Par Value? A business corporation must sell shares of stock in order to capitalize the corporation, that is, provide the corporation with its own capital, separate from the money of its owners. This separation provides part of the support for shielding the shareholders from personal liability for the debts and obligations of the corporation. Shares of stock sold by the corporation represent proportionate ownership interests held by shareholders in the corporation. “Par value” is a dollar value assigned to shares of stock which is the minimum amount for which each share may be sold. There is no minimum or maximum value that must be assigned. Shares may also have “no par value,” which means that the Board of Directors
