What is a share certificate?

A share certificate is a document that proves that someone participates in (has a share in) the capital of an enterprise or company. Multiple bearer shares can be embodied by one share certificate, while no share certificates are issued for registered shares.

This document is often used for the safekeeping of shares, whereby the custodian can credit beneficiaries for a share in the collective deposit (giro deposit) based on a share certificate given in safekeeping.

The concept is important in the context of share trading and legal ownership rights.