Share Certificate

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DEFINITION of 'Share Certificate'

A share certificate is a written document signed on behalf of a corporation, and serves as legal proof of ownership of the number of shares indicated.

Also referred to as a "stock certificate".

BREAKING DOWN 'Share Certificate'

In modern financial markets, individual investors rarely take physical possession of their share certificates. "Scripophily" is a term that signifies the collecting of share certificates and other forms of paper based financial securities. Similar to stamp collecting or bank note collecting, a share certificate's value is dependent on its condition and age.

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RELATED FAQS
  1. What does "in street name" mean, and why are securities held this way?

    In almost every instance when you buy or sell securities with a broker, your name is not actually on the stock or bond certificate. ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  5. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  6. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>

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