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Stock Certificate

A stock certificate is a physical or electronic document that represents ownership in a corporation. It serves as evidence that an individual or entity owns a certain number of shares in a company. Stock certificates include details such as the shareholder’s name, the number of shares owned, and the date of issue. While physical stock certificates were once common, most shares are now held electronically through brokerage accounts.

Example

An investor who owns 100 shares of a company may receive a stock certificate that details their ownership and the number of shares held.

Key points

• A document that represents ownership in a corporation.

• Contains details about the shareholder and the number of shares owned.

• Physical certificates are less common today, with most shares held electronically.

Quick Answers to Curious Questions

Most shares are now held electronically through brokerage accounts, making trading and record-keeping more efficient.

The shareholder’s name, the number of shares owned, the company name, and the issue date are standard details.

Investors can request a physical or electronic certificate from their broker, though this is less common today due to the digital nature of most stock holdings.