If you are holding a company's stock, it implies you are the one of the shareholders of the company, so that you can aver on everything which company owns. As an owner, you are unrestricted to your share of the company's earnings as well. These earnings will be given to you. These earnings are called “dividends” and are given to the shareholders from time to time. Possessing a stock means that, regardless of what ensue to the company, the utmost value you can lose is the value of your stocks. Even if a company of which you are a shareholder goes bankrupt, you can never lose your personal assets. "Stock certificate" is used to represent a stock. It is a piece of paper that is evidence of your possession. Though, in this day and age you could also have a “demat” account and it does not require “stock certificates”. Selling and buying stocks can be done just by a few clicks on computer as work can be done electronically. As a shareholder of a public company does not imply you contribute in the daily administration of the business. The value of the firm for shareholders is made-up to increase by the management of the company. If this does not occur then the shareholders can cast their vote for removal of management. The importance of being a shareholder is that you are permitted to a portion of the company’s profits and have asserted on possessions. The better the section of the profits you get, the more shares you own. Your claim on assets is only applicable if a company goes ruined. You’ll receive what's left after all the creditors have been paid in case of insolvency.
"Limited liability" is an additional awfully imperative characteristic of stock which implies that, like an owner of a stock, you are "not individually responsible" if the company is not able to pay its amount overdue. In supplementary lawful arrangement such as joint venture, if the joint venture unyielding goes insolvent the creditors can come after the partners “individually” and sell off their house, car, furniture, etc.