A stock certificate is the actual physical evidence showcasing someone’s ownership in a particular company. A stock certification shows how many shares are owned, the date obtained, an identification number with a corporate seal as well as signatures. Many have intricate designs on them in order to keep from fraud occurring.
How it Works
Stocks are the foundation of a portfolio and represent partial ownership in a company. Usually these records of ownership are kept electronically, but a shareholder can ask to receive a paper version. They illustrate a proprietary interest in a common stock or the assets of a corporation. They are transferred as negotiable and typically require that this transfer must be registered directly with the issuer in order for the transfee (person the stock is being transferred to) is a member of the corporation.