As you can see in our article on Certificate-Free and Certificated Stock Issuance, public markets have abandoned certificated stock almost entirely. The Direct Registration System (DRS), the SEC allows securities to be registered on the company's internal ledger through the Direct Registration System (DRS):
"In 1977, the concept of the “uncertificated security” was introduced in Article 8 of the UCC. This innovation allowed issuers to issue uncertificated (i.e., certificateless) book-entry securities, the transfer of which is greatly simplified compared to the transfer of certificated securities because transfer can be effected and protected purchaser status can be achieved by simply registering the transferee’s name on the books of the issuer."
- U.S. Securities and Exchange Commission
But, what do you do if you are a certificate-free company and a stockholder requests a stock certificate? Captable.io provides an easy solution. The holder of your uncertificated stock has the right to request a Notice of Issuance of Stock that Captable.io generates automatically for each security. Simply print this notice if the stockholder requests a physical copy. To see an example of this, click on the Notice of Issuance of Stock under documents here.
Please do note, this notice does not include a Company officer's signature. If you are interested in issuing electronic stock certificates, we recommend you consult with your legal team about its implications and review our article on issuing certificated stock here. You may use our templates or ask your legal team for a template.