Share Certificate even called as Stock Certificates is a legally approved paper issued by an organization in order to legally state the ownership of the company shares to the shareholder or the stockholder. Generally a company raises its capital by issuing company shares which have a specific price. The capital increased may be to manage the huge investments needed to start any gainful business or just to increase its assets. These shares are issued in form of certificates- called as Share Certificate and the person who purchases these shares is called a shareholder. Any individual can purchase company shares and get a share certificate which is nothing but a proof of rights and thus the share holder gains the right to vote within the company and can also take part in the Annual General Meetings of the company. If the organization issues five thousands shares in the financial market and if a share holder buys five hundred shares it implies that the shareholder holder of the organization because he has purchased the company shares in form of Share Certificates.



Anyways investing in shares is a dicey business. Consider if you buy the shares of a particular organization in order to raise the assets for the company, the company further puts in your money in its business operations where the company is at a risk that it might face a profit or a loss. The Share Certificate has a specific value for which it is purchased. Now, if the company makes great profits automatically the worth of your shares increases and so does the Share Certificate as lot of people want to share in this organization. At this moment of time, you hold your shares with the company for a longer time suppose more than 3 months, 6 months or even more, you receive payment known as Dividend and registered using Dividend Vouchers. Dividend payment is made to the company share holders after the company has made gains. You can further sell off the company shares to make profits for yourself, the company has no control over this.

On the other hand, if the company faces a loss, actually it is a loss for you as the price of shares is fallen, you have two options either sell off the shares and bear the losses or wait till the company starts making gains in future and this is generally uncertain. This is a major problem faced while buying company share certificates. A person should make a detailed study to know if the company is going to grow or loose in future but then this is again a risky decision as nobody knows what future holds for you.

Investing in shares is a type of betting where the gain or failure relys on how the company performs in its future, for which it increases its capital by issuing shares that are bought by shareholders in form of Share Certificates in the stock market with a specific price. He being the shareholder of the company, the company pays him the Dividend either annually, half yearly or quarterly depending on the company's rules and conditions (as mentioned on the application form).