What is a Z-Certificate?
The z-certificate is a document that is commonly issued as proof of ownership of stocks when the intent of the investor is to only hold on to the stock for a short period of time. Several financial institutions around the world issue the z-certificate or a similar document. The Bank of England is one of the premier banking institutions that issue z-certificates to stockholders. Carried in place of stock certificates, the z certificate often carries an advantage that is especially desirable when the intent is to only hold the stocks for a short time. Z-certificates often yield a higher rate of interest over the short term, since the instrument is essentially a time deposit. This allows the investor to realize more of a return during the possession of the short term transaction. The possession of a z-certificate provides a quick and easy means of demonstrating ownership. Typically, the detail included on z-certificates is somewhat less comprehensive that the amount of information include
