What financial instrument is represented by a certificate which is proof of ownership?

Understand the Problem

The question is asking about a financial instrument that is represented by a certificate as proof of ownership. The user is prompted to choose between stocks and bonds, indicating a focus on the characteristics of each instrument.

More Information

A stock certificate serves as legal proof of ownership of shares in a corporation. This is different from a bond certificate, which represents a debt owed by the issuer.

Tips

Confusing stocks with bonds is common. Remember, stocks represent ownership in a company, while bonds are a form of debt.

Sources

• Stock certificate - Wikipedia - en.wikipedia.org
• Financial Instruments Explained: Types and Asset Classes - investopedia.com