If you have a corporation in California you're required to issue shares of stock - we break down what that means and what you need to do. The DFPI regulates all offers and sales of securities in California.This article explains the basic requirements to keep in mind when your corporation issues any securities. What are Shares of Stock and how are they used? The Securities and Exchange Commission (SEC) oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. Want to invest in stocks? A limited liability company (LLC) cannot issue stock. These companies are made up of members, not shareholders, which has tax implications as well. When you sell stocks, you could face tax consequences. These tips may help you limit what you owe and reduce capital gains taxes on stocks.