Definition

1. Noun:
   • A document proving ownership of shares in a corporation: A "stock certificate" is a physical or electronic legal document that certifies the number of shares an investor owns in a specific company. It serves as formal proof of ownership.

Usage

• A "stock certificate" is issued by a corporation to a shareholder upon the purchase of its stock. Historically, it was a paper document, but modern certificates are often held electronically in "street name" by a broker.
• It is used in contexts of investment, corporate finance, and legal ownership.
• Example: (This shows the certificate as a tangible proof of purchase.)
• Example: (This illustrates its legal function in transactions.)

Advanced Usage

• "Bearer stock certificate": A type of certificate that is not registered in the owner's name. Ownership belongs to whoever physically holds the certificate.
  • Bearer stock certificates are now rare due to regulatory changes.
• In book-entry form: Refers to the modern, electronic method of recording stock ownership without issuing a physical certificate.
  • Most securities today are held in book-entry form, eliminating the need for a physical stock certificate.

Variants and Related Words

• Share certificate: (noun) A synonym, more commonly used in British English.
  • He received a share certificate for his investment in the UK company.
• Stock (noun): The general term for the ownership shares themselves, not the specific document.
• Equity (noun): Ownership interest in a company, often represented by stock.

Synonyms

• Security certificate: A broader term for a document evidencing ownership of a financial security.
• Instrument of ownership: A formal legal term for a document proving ownership rights.

Related Phrases

• To issue a stock certificate: The action of a corporation creating and delivering the certificate to a shareholder.
  • The company will issue a stock certificate within two weeks of the purchase.
• Lost stock certificate: A situation where the physical document is missing, requiring a formal indemnity process for replacement.
  • Replacing a lost stock certificate can be a lengthy procedure.

Related Idioms

• "Paper profit": An unrealized gain on a security that exists on paper (e.g., reflected in a certificate's value) but has not been cashed in through a sale.
  • The rising stock price showed a large paper profit on his stock certificate, but he decided to hold.

Noun

1. a certificate documenting the shareholder's ownership in the corporation
   • the value of his stocks doubled during the past year