What Is a Share Certificate?

A stock certificate, also called a "equity certificate", is a kind of certificate issued by a limited liability company to shareholders. This certificate is both a proof and a certificate of entitlement. It proves that the investors of the limited liability company have invested and invested in the shares. The investor holding this certificate is the shareholder of the limited liability company and has the right to obtain the economic benefits and share the profits prescribed by the company. A stock certificate is only a proof of capital contribution. It is different from the stock of a company limited by shares. It cannot be transferred, cannot be traded, and cannot be issued to the public. It is non-securities. ^[1]