Business Setup & Legalintermediate
Share Certificate
Definition
A legal document issued by a company to a shareholder confirming their ownership of a specified number of shares.
Why it matters
Share certificates are legal proof of ownership. They are required when selling the company, raising investment, or transferring shares to employees or advisors.
Example
When incorporating, a founder issues herself 1,000 ordinary shares in her company. Her share certificate confirms 100% ownership, one page that could be worth millions.
Related terms
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