Certificated Stock
Categories: Stocks, Investing, Regulations
When you're dealing with finance, "stock" usually refers to shares of a company, like stock of Amazon or Apple. Sometimes that's the case with "certificated stock" as well, which can be used as a synonym for "certified stock."
Usually, though, the "stock" in "certificated stock" means something more like how a cowboy might use it, as in "we better get this stock to Omaha before the snows set in."
A futures contract for a commodity guarantees that a certain amount of the commodity will be delivered at a certain time for a certain price. A hundred weight of pork bellies for $164.43 on July 1.
A certificated stock is that pork belly quantity properly inspected and validated to be in the correct quantity. It means it's good to go for fulfilling the futures contract.
