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Share Certificate also known as Stock Certificates is a legally approved paper released by an organization soas to officially state the rights of the company shares to the shareholder or the stockholder. Usually a company raises its resources by issuing company shares which have a specific value. The capital raised may be to manage the huge investments required to begin any profitable business or just to raise its assets. These shares are issued in form of documents- called as Share Certificate and the person who buys these shares is called a shareholder. Any individual can purchase company shares and get a share certificate which is nothing but a proof of ownership 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 organization. If the organization releases five thousands shares in the stock market and if a share holder buys five hundred shares it implies that the shareholder holder of the organization because he has bought the company shares in form of Share Certificates. Anyways investing in shares is a dicey business. Suppose if you purchase the shares of a particular organization in order to increase the assets for the company, the company further invests your money in its business functions where the company is at a threat that it might face a gain or a loss. The Share Certificate has a particular value for which it is purchased. Now, if the company makes great profits automatically the worth of your shares rises and so does the Share Certificate as lot of people want to share in this company. 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 profits. You can further sell off the company shares to make profits for yourself, the company has no authority over this. On the other hand, if the company faces a failure, actually it is a loss for you as the price of shares is decreased, you have two choices either sell off the shares and tolerate the losses or wait till the company starts making gains in future and this is generally unpredictable. This is a major risk faced while buying company share certificates. A person must make a deep study to know if the company is going to gain or loose in future but then this is again a risky judgment as nobody knows what destiny holds for you. Investing in shares is a type of betting where the profit or loss depends on how the company functions in its future, for which it raises its capital by releasing shares that are purchased by shareholders in form of Share Certificates in the stock market with a specific value. He being the shareholder of the company, the company pays him the Dividend either annually, half yearly or quarterly depending on the company's terms and conditions (as mentioned on the application form).

Share Certificates gives you the right to own company shares and become a shareholder of the company, to know more log on ayshare certificate shareholders are paid dividend for investing in the company , check more at dividend voucher to know more about Share Certificates and Dividend Vouchers get help at simpleonlineshop.co.uk

Article Source: ArticlesBase.com - What is Share Certificate