share certificate & share warrant
What is the difference Share certificate and share warrant ?
Share certificate is a proof of ownership of shares. It shows that a concerned person owns the share and nothing more than that. A share certificate can be issued by a private or public company if it is limited by shares. A share certificate can be issued for partly paid or fully paid share. The owner of the share certificate being a shareholder has complete right over the practices of the company. A share warrant is issued only for a fully paid up share only by a public company. Further, besides a proof of ownership for the bearer of the warrant, a share warrant is a negotiable instrument which can be transfered. To issue a share warrant the company needs to take permission from the Central Government and the Articles of Association must allow the company to issue share certificates. A share warrant cannot be issued in an IPO and it can be issued only upon the request of the shareholder only and not the company.
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