What is Share Certificate

Share Certificate also known as Stock Certificates isCertificate as lot of people want to share in this
a legally approved paper released by an organizationcompany. At this moment of time, you hold your
soas to officially state the rights of the companyshares with the company for a longer time suppose
shares to the shareholder or the stockholder. Usuallymore than 3 months, 6 months or even more, you
a company raises its resources by issuing companyreceive payment known as Dividend and registered
shares which have a specific value. The capital raisedusing Dividend Vouchers. Dividend payment is made
may be to manage the huge investments required toto the company share holders after the company
begin any profitable business or just to raise itshas made profits. You can further sell off the
assets. These shares are issued in form ofcompany shares to make profits for yourself, the
documents- called as Share Certificate and thecompany has no authority over this. On the other
person who buys these shares is called a shareholder.hand, if the company faces a failure, actually it is a
Any individual can purchase company shares and getloss for you as the price of shares is decreased, you
a share certificate which is nothing but a proof ofhave two choices either sell off the shares and
ownership and thus the share holder gains the righttolerate the losses or wait till the company starts
to vote within the company and can also take part inmaking gains in future and this is generally
the Annual General Meetings of the organization. Ifunpredictable. This is a major risk faced while buying
the organization releases five thousands shares in thecompany share certificates. A person must make a
stock market and if a share holder buys five hundreddeep study to know if the company is going to gain
shares it implies that the shareholder holder of theor loose in future but then this is again a risky
organization because he has bought the companyjudgment as nobody knows what destiny holds for
shares in form of Share Certificates. Anywaysyou. Investing in shares is a type of betting where
investing in shares is a dicey business. Suppose if youthe profit or loss depends on how the company
purchase the shares of a particular organization infunctions in its future, for which it raises its capital by
order to increase the assets for the company, thereleasing shares that are purchased by shareholders
company further invests your money in its businessin form of Share Certificates in the stock market
functions where the company is at a threat that itwith a specific value. He being the shareholder of the
might face a gain or a loss. The Share Certificate hascompany, the company pays him the Dividend either
a particular value for which it is purchased. Now, ifannually, half yearly or quarterly depending on the
the company makes great profits automatically thecompany's terms and conditions (as mentioned on
worth of your shares rises and so does the Sharethe application form).