What does a stock certificate represent?

A stock certificate represents ownership in a public corporation. When an individual holds a stock certificate, they possess a legal document that signifies their equity stake in the company. This ownership is typically proportional to the number of shares held relative to the total shares outstanding, allowing the shareholder to participate in the company’s profits—often through dividends—and vote on corporate matters, depending on the type of stock owned.

In the context of the other choices, a debt obligation pertains to borrowed funds that must be repaid, typically associated with bonds or loans. A bond issuance is a process where an entity—like a corporation or government—raises funds by creating debt securities that investors can purchase. Lastly, a government investment usually refers to ownership stakes made by government entities in various ventures or sectors, but does not specifically pertain to ownership in a corporation. Overall, the key distinction here is that a stock certificate directly ties to ownership rights in a corporation.