A share certificate is a legal document that certifies the legal interest of ownership of a specific number of shares or stock in a corporation. It is also known as a stock certificate. Share certificates are issued by companies that sell shares in the market, and shareholders who buy in are issued a share certificate as a receipt for the purchase and ownership of shares in the company. The certificate represents a legal proprietary interest in the common stock or assets of the issuer corporation. It evidences a chose in action against the issuer to collect dividends and usually to influence the issuer through voting pursuant to the issuers charter and bylaws.
Share certificates are offered by credit unions and are a type of savings account that lets the depositor earn a higher dividend in exchange for a time length commitment from the depositor not to make withdrawals. They are unique savings instruments provided by credit unions and are attractive to savers who are working to accumulate stable wealth. Share certificates typically allow a depositor to earn a higher dividend yield by promising not to withdraw their principal deposited amount for a certain length of time. The longer-term commitment you select for your deposit, the higher your dividend yield will usually be.
In summary, a share certificate is a legal document that certifies the legal interest of ownership of a specific number of shares or stock in a corporation. It is issued by companies that sell shares in the market and represents a legal proprietary interest in the common stock or assets of the issuer corporation. Share certificates are also a type of savings account offered by credit unions that let the depositor earn a higher dividend in exchange for a time length commitment from the depositor not to make withdrawals.
