Physical shares意思

"Physical shares" is a term used in the context of investing and refers to actual certificates representing ownership of stocks or shares in a company. Before the widespread adoption of electronic trading systems, investors would receive physical certificates for the shares they bought. These certificates would typically include the investor's name, the number of shares owned, and the company's seal.

Physical shares were the original way to confirm share ownership, and they were transferred from one person to another through a process known as "transfer of title." This involved the physical delivery of the certificate to the new owner, who would then have their name added to the certificate as the new holder.

With the advent of electronic trading and the establishment of central depositories like the Depository Trust Company (DTC) in the United States, the majority of share transactions are now electronic. This system allows for faster and more efficient trading, as well as the reduction of risks associated with lost or stolen certificates.

Today, most investors hold their shares in electronic form, often through brokerage accounts. However, some investors still prefer to hold physical shares as a tangible representation of their investment, or for sentimental or collection purposes. Physical shares are less common but are still issued by some companies upon request.