Share Certificate
A physical paper document issued by a transfer agent evidencing a shareholder's registered ownership of a specified number of shares in a corporation.
Full Definition
A share certificate (also called a stock certificate) is a legally recognised instrument issued by the transfer agent in the name of the registered shareholder, specifying the number of shares owned, the CUSIP number, the par value (if any), and the issuer's name. Although most securities are now held in book-entry or DRS form, physical certificates remain legally valid and are still requested in certain transactions. Cancellation of old certificates and issuance of new ones is a core transfer agent function. Editors should note that 'share certificate' is the preferred British English term, while 'stock certificate' is more common in U.S. usage.
Usage
Usage note: In U.S. documents, 'stock certificate' is more prevalent; in UK and Commonwealth documents, 'share certificate' is standard. Editors should apply the terminology consistent with the governing jurisdiction of the issuer.
In Context
- "Shareholders who hold physical share certificates must surrender them to the Transfer Agent in order to receive the merger consideration." — Merger proxy / letter of transmittal
- "The company ceased issuing physical share certificates in 2018; all new shares are issued in book-entry form only." — Investor FAQ / annual report