DEFINITION of 'Certificated Stock'

The stock of a commodity that has been inspected by qualified representatives and determined to be of basis grade. Certificated stock is an important part of futures trades, as certificated stocks are deemed to be acceptable for delivery and, in general, of a high quality and suitable for wholesale shipment.

BREAKING DOWN 'Certificated Stock'

Stock of commodities that are certificated are also referred to as "certified stocks." They can be used as delivery against futures contracts and are normally kept at a holding facility until transfer. For grain, for instance, a certificated stock is known as "stocks in deliverable position" or deliverable stock.

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