stock certificate

business

Also known as: share certificate

Written by

The Information Architects of Encyclopaedia Britannica

Last updated

July 14, 2026

Quick Summary

A stock certificate is a document that shows you own shares in a corporation. Corporations issue two main types of securities: debt (bonds) and ownership (stocks). When you own stock, you have a stake in the company's operations and are entitled to certain rights, such as sharing in profits (dividends) and voting on company matters.12

The stock certificate itself serves as proof of ownership and is a key instrument for transferring that ownership. While different classes of stock exist, such as preferred and common stock, each represents a different level of claim on the company's assets and earnings.2

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A stock certificate ordinarily is given as documentary evidence of share ownership. Originally this was its primary function; but as interest in securities grew and the capital market evolved, the role of the certificate gradually changed until it became, as it is now, an important instrument…
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A stock certificate ordinarily is given as documentary evidence of share ownership. Originally this was its primary function; but as interest in securities grew and the capital market evolved, the role of the certificate gradually changed until it became, as it is now, an important instrument…
Read More