What is the procedure for issuing stock?

Issuing stock is the process used to create and allocate the ownership of a corporation. When a business entity is incorporated in Washington, it must issue stock in order to create ownership. The procedure for issuing stock can vary depending on the type of corporation and other factors. Generally, the process begins with the board of directors preparing and approving the Articles of Incorporation. These documents must be filed with the Washington Secretary of State and must include the number of shares of stock to be issued. Once the Articles are approved and the corporation is formed, a stock certificate may be printed and given to the stockholder. The certificate should detail the number of shares owned and the associated rights. In some cases, the corporation may need to register the stock with the U.S. Securities and Exchange Commission (SEC), which would require additional paperwork and steps. After the stock is issued and registered, the stock may be able to be sold, transferred, or exchanged in the public market. In summary, to issue stock a corporation must file articles of incorporation with the Washington Secretary of State, print and distribute a certificate to the shareholder, and potentially register the stock with the SEC.

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What is the procedure for issuing stock?

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