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Simple English definitions for legal terms
certificate of stock
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A quick definition of certificate of stock:
A certificate of stock is a piece of paper that proves you own a part of a company. It shows how many shares of the company you own. Another name for it is a stock certificate. There are also other types of certificates, like face-amount certificates and periodic-payment-plan certificates, which are different kinds of investments.
A more thorough explanation:
A certificate of stock is a document that proves ownership of shares of stock in a company. It is also known as a stock certificate or share certificate.
- John owns 100 shares of stock in XYZ Corporation. He received a certificate of stock as proof of his ownership.
- Mary inherited 500 shares of stock in ABC Corporation from her grandfather. She found the stock certificates in a safe deposit box.
These examples illustrate how a certificate of stock is a physical document that represents ownership of shares in a company.