Stock Certificate

Business, Legal & Accounting Glossary

Definition: Stock Certificate

Full Definition of Stock Certificate

In company law, a stock certificate – called a certificate of stock by some or also sometimes referred to as a share certificate – is a lawful certificate that verifies tenure of a detailed quantity of shares of stock in a company. In big businesses, purchasing stocks will not always give a stock certificate.

In America, electronic registration of shares is ousting the stock certificate. Firms are no longer obligatory to give paper records, and nearly 420 of the seven thousand publicly traded securities do not. Agents could charge up to five hundred dollars for supplying a paper certificate, however, this payment can be circumvented by recording stocks right with the stock transfer agent and asking them the issue of certificate.

Let’s take the example of Sweden, where the share certificates have been majorly done away with, individuals use electronic shares as an alternative. These are registered in the stock owner’s name or in the stock owner’s broker’s name. In Sweden, share certificates may be owned by few, but only those shares that are not listed on any stock exchange in Sweden. Share certificates have no relationship with voting rights. An owner of Share certificates can give proxy to another person to vote on his behalf.

There are two types of Stock Certificates one is called the registered stock certificate and the other is called the bearer stock certificates. Bearer Stock certificates as the name suggest belongs to the person who holds those certificates. The Bearer Stock certificates physical possession of the certificate entitles the holder to exercise all legal rights. There are various laws that now help to remove the bearer stock certificate and they are no more seen nowadays.

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Modern Language Association (MLA):
Stock Certificate. Payroll & Accounting Heaven Ltd. August 06, 2021
Chicago Manual of Style (CMS):
Stock Certificate. Payroll & Accounting Heaven Ltd. (accessed: August 06, 2021).
American Psychological Association (APA):
Stock Certificate. Retrieved August 06, 2021, from website:

Definition Sources

Definitions for Stock Certificate are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th April, 2020 | 3 Views.