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Share Certificate also known as Stock Certificates is a legally approved paper issued by an organization soas to legally state the ownership of the company shares to the shareholder or the stockholder. Generally a company raises its capital by releasing company shares which have a specific value. The capital increased might be to manage the huge investments needed to begin any gainful business or just to increase its funds. These shares are released in form of documents- 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 confirmation of rights and hence the share holder gains the right to vote within the company and can even take part in the Annual General Meetings of the organization. If the organization issues 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 purchased the company shares in form of Share Certificates.

However investing in shares is a dicey business. Suppose if you buy the shares of a particular organization in order to increase the assets for the company, the company further puts in your money in its business functions where the company is at a risk that it may face a profit or a loss. The Share Certificate has a particular price for which it is purchased. Presently, if the company gains huge profits automatically the worth of your shares rises and so does the Share Certificate as more and more people wish to share in this company. At this moment of time, you keep your shares with the company for a greate time suppose more than 3 months, 6 months or even more, you receive payment known as Dividend and recorded 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.

Otherwise, if the company faces a loss, actually it is a loss for you as the value of shares is fallen, you have two options either sell off the shares and tolerate the losses or wait till the company starts making gains in future and this is often unpredictable. This is a main risk faced while buying company share certificates. A person must make a deep study to know if the company is going to grow or loose in future but then this is again a risky judgment as nobody knows what future holds for you.

Investing in shares is a type of betting where the profit or loss relys on how the company performs in its future, for which it increases its assets by issuing shares that are purchased 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 yearly, half yearly or quarterly depending on the company's rules and conditions (as explained on the application form).