Shipping Certificate

DEFINITION of 'Shipping Certificate'

An instrument used by futures exchanges as a negotiable commitment by an approved delivery facility to transfer the underlying commodity to the holder of the certificate under the prescribed terms.

BREAKING DOWN 'Shipping Certificate'

A shipping certificate is unique because it doesn't necessarily require the approved facility to actually store the deliverable. The obligation can be met through current or future production of the commodity.

RELATED TERMS
  1. Certificated Stock

    The stock of a commodity that has been inspected by qualified ...
  2. In Sight

    A term describing deliverable grades of commodities underlying ...
  3. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
  4. Delivery Instrument

    A document given to the holder of a futures contact that may ...
  5. Mutual Investment Certificate

    A certificate issued by a local or municipal authority for the ...
  6. Currency Certificate

    A note that grants the holder the right to convert a specific ...
Related Articles
  1. Markets

    Major Companies That Lose Money On Shipping (AMZN)

    We look at some of the big companies in the home delivery business that have high shipping costs and how they mitigate this.
  2. Investing

    Old Stock Certificates: Lost Treasure Or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth.
  3. Investing

    How Does a Credit Facility Work?

    A credit facility is a loan or collection of loans a business or corporation takes to generate capital over an extended period of time.
  4. Markets

    Understanding the Commodity Market

    There are currently 50 physical and virtual commodity markets worldwide where almost 100 primary commodities trade through the exchange of ownership rights.
  5. Retirement

    Index-Linked Certificates Of Deposit: Upside Potential, Low Risk

    Index-linked CDs generate returns similar to indexes, without the potential for loss.
  6. Managing Wealth

    How To Invest In Commodities

    Find out which futures, options or funds will be your perfect commodity portfolio fit.
  7. Markets

    When Will it Be Safe to Buy Commodities?

    When will it be safe to buy commodities (and which ones)? A closer look at the commodities markets and how they move.
  8. ETFs & Mutual Funds

    Commodity Funds 101

    These funds make investing in gold, oil or grain an easier prospect.
  9. Trading

    Commodities: The Portfolio Hedge

    These diverse asset classes can provide downside protection and upside potential. Find out how to use them.
  10. Markets

    Understanding Financial Instruments

    Financial instrument is a general term used to describe a monetary asset.
RELATED FAQS
  1. Is this stock certificate worthless?

    I bought 50,000 shares of restricted common stock from a company in December 2015 and received a stock certificate. I then ... Read Answer >>
  2. How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ... Read Answer >>
  3. What should I do with my suspended security?

    A stock in my brokerage account has been suspended from trading. Consequently it also has a 'frozen' relationship with its ... Read Answer >>
  4. I hold stock certificates in a company that just had a stock split. What happens ...

    The short answer is that a stock split will have little effect on the holder of stock certificates. In most cases when an ... Read Answer >>
  5. How do I transfer all the stock of my company to my brother?

    I started a Shell corporation in 2014 with myself as the sole stockholder. There is no revenue to date... Read Answer >>
  6. I lost my share certificate. Do I still own the stock?

    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center