In
corporate law, a
stock certificate (also known as
certificate of stock or
share certificate) is a legal document that certifies
ownership of a specific number of
shares or
stock in a
corporation. Historically, certificates may have been required to evidence entitlement to
dividends, with a receipt for the payment being endorsed on the back; and the original certificate may have been required to be provided to effect the transfer of the shareholding. Over time, these functions have been rendered redundant by statutory schemes to streamline the administrative burden on corporations, and to facilitate and streamline trading on a
stock exchange. For example, most jurisdictions now impose an obligation on corporations to pay dividends to shareholders registered at a relevant point of time without the need to produce the share certificate as proof of entitlement and the certificate is no longer required to be produced with a transfer of a shareholding. In some jurisdictions today, the issue of paper stock certificates may be dispensed with, at least in some circumstances, and many corporations now provide a
holding statement in lieu of a share certificate for each parcel of shares owned.