Administering a stock program is not necessarily a complicated endeavor, but it does require that you follow certain procedures not only when issuing, but also when dealing with such events as redeeming, canceling, or reissuing a stock that has been lost, stolen or destroyed.
The advent of digital technology has brought with it several benefits not just for consumers, but also for businesses. One area that has been impacted by digital technology is stock issuance. More and more companies, both large and small are choosing to go paperless when it comes to issuing stocks, not just, because it can potentially save a tree, but because it also has several additional advantages such as:
- Added security – paper certificates can be easily stolen, lost or destroyed. Stock holders do not have to worry about losing their digital certificates as they can be tracked electronically and simply sent a monthly or quarterly statement regarding their holdings. Furthermore, in terms of security, it is more difficult for someone to attempt to perpetrate a fraud when dealing with digital stock certificates as there are generally safeguards in place to deter such events. The use of a password-protected stock certificate tracking system and the ability to backup important data provides peace of mind not just for the plan administrator, but stockholders as well.
- Saves time and money – any stock plan administrator can tell you that processing paper stocks can be time-consuming and costly. Not only must you print, carefully examine and then ship each individual stock certificate, but every time there is any type of change that will potentially impact stock issuance, you will have to do it all over again! Moreover, imagine the time it takes to organize and prepare any reports needed?
If you have issued many stock or experienced several changes throughout the report period, going through your stock ledger and paper share records can be both time consuming and nerve wracking, particularly as the chance of inadvertently making a mistake is often higher using a paper system.
An electronic stock certificate tracking program can provide you with the right tools to exercise better control over your stock program and quickly produce statements and corporate reports in an organized and timely manner. Finally, training your employees to implement and use an electronic stock program is often an easy and painless process.
That is why we created the Stock Certificate Administration Program.