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A share certificate is a document issued by a company that certifies a shareholder is the rightful registered owner of shares in the company. A certificate is issued as a receipt of her purchase and to reflect ownership of company shares as a legal proof.
When companies issue shares in the market, shareholders who buy in are issued a share certificate. The share certificate basically acts as a receipt for the purchase and ownership of shares in the company.
An appraisal right is a legal right of a company's shareholders to demand a judicial proceeding or independent valuation of the company's shares with the goal of determining a fair value of the stock price.
Companies do not have to issue these certificates automatically but are legally required to issue a certificate when requested. While stock certificates are mostly symbolic, they can be valuable to investors that want physical proof that they own stock.
Stock certificates. Stock certificates are issued to a corporation's shareholders to designate their ownership.
Proving securities ownership is easier if you can remember how the security was acquired. If you bought the security through a brokerage firm, contact the firm and ask if they have a record of your ownership. Brokerage firms are required to keep records for only six years.