This is really a sub-ledger, in which an account is opened with each stockholder, charging him with certificates issued to him and crediting him with those which he has surrendered. (See Form 1.) Inasmuch as the stubs in the stock certificate book constitute a bound volume from which entries are made into the stock ledger, the latter record is not one of original entry. It is therefore safe and entirely proper to use a loose-leaf book for this ledger without the precautions necessary in the case of a loose-leaf minute book. The loose-leaf stock ledger is usually arranged alphabetically, thereby saving all reference to an index. If the company is a large one, there is considerable advantage in this alphabetical arrangement. In some states the alphabetical arrangement is required by law. The fact that accounts can be removed as they are closed is also an important feature of the loose-leaf ledger.
Form I. Capital Stock Ledger.