What is the process for issuing corporate stock?

In Texas, the process for issuing corporate stock requires several steps. Prior to selling stock, business owners in Texas must register their business as a corporation with the Secretary of State. This must be done before any stock can be issued. After the business is registered with the Secretary of State, the corporation must then draft a charter that details the rights, responsibilities, and limits of the shareholders of the corporation. This document must be approved by the board of directors. Once the charter is approved, the board of directors must then authorize the issuance of stock. This authorization will define how many shares will be issued, and the rights and privileges associated with each share. It will also detail the type of payment (cash or property) accepted in exchange for shares, as well as the price per share. Finally, the corporation must file a certificate with the Secretary of State showing that the stock has been authorized and the information about the stock issuance. Once all of these steps have been completed, the corporation may then offer its stock for sale to the public.

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What is the process for issuing corporate stock?

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