Updated on March 16, 2023
A ‘Share certificate’ or ‘Stock certificate’ refers to a written/printed document signed on behalf of a corporation with entitlement to the holder which indicates legal proof of ownership of the shares indicated. Though, post dematerialsition, physical share certificates are no longer in use. Trading and investing now is carried out electronically through intermediaries online on exchanges which are connected electronically and carry out millions of transactions in real time. Share certificates were issued as a receipt or acknowledgement for the purchase of stock and represented ownership rights. Dividend was paid on presentation of the Share certificate and the receipt for the payment was endorsed on the back.
Information on Share certificate
Share certificate carried the following information:
Company name and registration number
Name and address of Shareholder
Number of shares owned
Date of Issuance of shares