Types of Stock Certificates


A stock certificate is a legal document that certifies ownership of a certain number of shares of stock in a company or corporation. Many take physical delivery of the stock certificate and others leave the shares in a stock brokerage account or bank portfolio.


  • A registered stock certificate shows the owner's name on the certificate. It will also show the number of shares, date issued, stock certificate number, CUSIP number and transfer agent.


  • A bearer stock certificate does not show a title or owner's name. They are most frequently used for bonds and can be almost impossible to replace if lost or stolen. Bearer certificates are almost obsolete.

Book Entry

  • Many stock certificates now are book entry only. This means that there are no physical certificates, and records are kept by the brokerage firm, the bank or transfer agent. These are most common in CDs (certificates of deposit) and bonds.

Street Name

  • Many brokerage firms hold stock certificates in street name. This means they keep track of the stock electronically. This allows for quick purchase, sale, dividend payments and correspondence through the underlying company.


  • Many stock certificates are now processed through a direct registration system (DRS). The transfer agent records the stock certificates electronically and thus reduces paperwork, the risk of loss and costs.

Obtaining a Physical Certificate

  • Some people still like, request, or feel the need to have a physical stock certificate. Many firms will charge a fee for delivery. Some old and bankrupt stock certificates may be worth money as a collector's item.


Promoted By Zergnet



You May Also Like

  • Kinds of Certificate Paper

    Types of Certificate Based Authentication. Types of Certificate Based Authentication. ... A paper stock certificate states your official stake in the company.

  • Selling Stock Certificates

    Stock certificates can be fascinating snapshots of our country's financial history. ... this article will explain how.There are two types of stock...

  • How to Make a Stock Certificate

    A stock certificate is a legal document that designates ownership of specific shares of stock in a corporation. ... Types of Stock...

  • How to Research a Stock Certificate

    ... the transfer agent will hold the shares in "street name," or as ... investor in the investor's name. ... Stock Certificate...

  • How to Transfer Stock Certificates

    ... manual transfers can be at risk. A lost or misplaced certificate is generally ... certificate you must sell the shares. ......

  • How Long Does a Lender Need to Keep an FHA Loan File?

    How Long Does a Lender Need ... Real Estate & Investment; ... How Long Do You Keep Corporate Financial Records? Business records...

Related Searches

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!