What is a share certificate?

A share certificate is a document that proves that someone participates in (has a share in) the capital of a company or corporation. Multiple bearer shares can be embodied by one share certificate, while no share certificates are issued for registered shares.

This document is often used in the custody of shares, where the custodian, based on a share certificate given in custody, can credit entitled parties for a share in the collective deposit (giro deposit).

The concept is important in the context of stock trading and legal ownership rights.