Share Certificate or also known as Stock Certificate is a legal document issued by the stock market regulator or the Central Depository System (CDS) to prove the ownership of shares/stocks of a company with an individual.
A Share Certificate usually indicated the company name of the shares purchased, the number of shares purchased, at what rate, the total value of the investment and relevant signatures.
However in the modern business world, the place of Share Certificates is diminishing and in some countries, have already ceased to existence. Today large volumes of shares are being traded and in very frequent terms. In such situations issuing Share Certificates is both nonviable and unnecessary. The trades may occur as frequent as many times in a single day, so issuing a Share Certificate is an impossibility.
Scripless Securities Settlement System (SSSS)
SSSS is a system introduced by many countries to ease the settlement of stock trades without the use of Share Certificates. So despite issuing a paper Share Certificate the SSSS keeps electronic records of the ownership of shares and automatically updated in real time as and when a stock trade occurs. This system has greatly enabled the stock market regulators to cut down on costs relating to issue of Share Certificates and also to improve the efficiency and effectiveness of transactions occurring withing the stock market.