Electronic shares, also called digital shares, are represented in the same form on the electronic stock ledger of the company.
Electronic shares are company shares that have been issued electronically and don’t exist in paper form. As everything has come on the internet these days, companies have also moved towards saving paper and becoming digital. One of the main reasons is that it offers a lot of advantages and has become increasingly more convenient. Electronic shares, also called digital shares, are represented in the same form on the electronic stock ledger of the company. It has the same properties that the paper shares have, but only recorded in an electronic form.
In short, a company can easily issue all the various forms of its shares electronically. There have been many recent technological advances that have led to more and more companies issuing electronic shares. But it is important for the companies to notify the shareholders of any changes in the shareholdings of the company. The founder would also have to keep a record of the shareholder list and shares using a cap table. Using electronic shares, you can seamlessly issue shares online where shareholders get notifications about the issuance. This would reduce the time and cost needed to keep the cap table of a company up to date.
To know more about electronic shares and the other share types you can issue, check out our blog or knowledge center here. And if you have not yet started using Eqvista as your cap table application, it’s time to do so. Check out our cap table software here & contact us today!