Stock Certificates - Definition - Law Dictionary Home Dictionary Definition stock-certificates

Definition :

Stock certificates. By the National Debt Act, 1870, it is provided that a holder of British Government Stock may obtain a stock certificate; that is to say, a certificate of title to his stock or any part thereof, with coupons annexed, entitle in the bearer of the coupons to the dividends on the stock (s. 26); that a certificate shall not be issued in respect of any sum of stock not being 50l., or a multiple of 50l., or exceeding 1000l. (s. 28); that a trustee of stock shall not apply for or hold a stock certificate, unless authorized to do so by the terms of his trust (s. 29); that no notice of any trust in respect of any certificate or coupon shall be receivable (s. 30); that where a stock certificate is outstanding the stock represented thereby shall cease to be transferable in the Bank books (s. 31); that a tock certificate, unless a name is inscribed thereon, shall entitle the bearer to the stock therein described, and shall be transferable by delivery (s. 32). The Act also contains many other provisions in regard to stock certificates (see ss. 33-42).

An instrument evidencing ownership of bond or shares of stock, Black's Law Dictionary, 7th Edn., p. 1430.