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Main Finance Terms stock certificate

stock certificate



document showing stockholder's ownership in the company. The certificate shows the number of shares, par value, class of stock (e.g., common stock), and voting rights. When endorsed, stock certificates are negotiable.


Dictionary of Finance and Investment Terms
stock certificate

documentation of a shareholder's ownership in a corporation. Stock certificates are engraved intricately on heavy paper to deter forgery. They indicate the number of shares owned by an individual, theirpar value(if any), theclassof stock (for example, common or preferred), and attendant voting rights. To prevent theft, shareholders often store certificates in safe deposit boxes or take advantage of a broker'ssafekeepingservice. Stock certificates become negotiable when endorsed.


Dictionary of Business Terms
stock certificate

writteninstrumentevidencing a share in the ownership of a corporation.


Referring Terms:
share


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stock certificate