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Aren't those ornamental at this point, though? Like I thought they use some other record-keeper as the source of truth on who owns the stock, rather than whethe
by SilasX 6y ago
Aren't those ornamental at this point, though? Like I thought they use some other record-keeper as the source of truth on who owns the stock, rather than whether you hold a certain piece of paper (bearer shares).
- bananapear 6y agoCertificates are still perfectly valid, but most stock is “dematerialised” and held at a central securities depository, like DTC - https://en.m.wikipedia.org/wiki/Depository_Trust_Company https://en.m.wikipedia.org/wiki/Depository_Trust_Company This allows transfer by “book entry” rather than mailing the physical documents - much like an electronic bank transfer.
- Scoundreller 6y agoStock certificates usually have your name on them, and then there's a process to sign them over to someone. The corporation has a register of its shareholders, and in this case it's you. At least in Canada, once you get a physical share, you can then buy shares directly from many companies by writing them a cheque without any commissions. Less important as trades here now average around $10, but that's fairly recent for many. I still have a share of a Canadian bank that spiked in value by the time I got my certificate sorted out. They still mail me a cheque every 3 months for <$1 in dividends.