Scripophily is the study and collection of stock and

bond Bond or bonds may refer to: Common meanings * Bond (finance), a type of debt security * Bail bond, a commercial third-party guarantor of surety bonds in the United States * Chemical bond, the attraction of atoms, ions or molecules to form chemica ...

certificates. A specialized field of

numismatics Numismatics is the study or collection of currency, including coins, tokens, paper money, medals and related objects. Specialists, known as numismatists, are often characterized as students or collectors of coins, but the discipline also includ ...

, scripophily is an area of collecting due to both the inherent beauty of some historical documents as well as the interesting historical context of each document. Some stock certificates are excellent examples of

engraving Engraving is the practice of incising a design onto a hard, usually flat surface by cutting grooves into it with a burin. The result may be a decorated object in itself, as when silver, gold, steel, or glass are engraved, or may provide an in ...

. Occasionally an old stock certificate will be found which still has value as a stock in a successor company.

History

Scripophily, the collecting of old stocks and bonds, gained recognition as a

hobby A hobby is considered to be a regular activity that is done for enjoyment, typically during one's leisure time. Hobbies include collecting themed items and objects, engaging in creative and artistic pursuits, playing sports, or pursuing oth ...

around 1970. The word "scripophily" was coined by combining words from

English English usually refers to: * English language * English people English may also refer to: Peoples, culture, and language * ''English'', an adjective for something of, from, or related to England ** English national ide ...

and

Greek Greek may refer to: Greece Anything of, from, or related to Greece, a country in Southern Europe: *Greeks, an ethnic group. *Greek language, a branch of the Indo-European language family. **Proto-Greek language, the assumed last common ancestor ...

. The word "scrip" represents an ownership right and the word "philos" means to love. Today, there are thousands of collectors worldwide (Scripophilists) in search of scarce, rare, and popular stocks and bonds. Collectors who come from a variety of businesses enjoy this as a hobby, although there are many who also consider scripophily a good investment. Many collectors like the historical significance of old certificates. Others prefer the beauty of older stocks and bonds that were printed in various colors with fancy artwork and ornate engraving. In recent times, Dot com companies and scandals have been particularly popular issuances. A recent addition to the hobby is collecting real, live shares issued in one's name. Common companies that issue stock certificates include Walt Disney, Harley-Davidson, McDonald's, Starbucks, Google, Ford Motors, Coca-Cola, and Berkshire Hathaway. Again, framing is a popular option for these shares. Many autograph collectors are found in this field, looking for signed certificates from

John D. Rockefeller John Davison Rockefeller Sr. (July 8, 1839 – May 23, 1937) was an American business magnate and philanthropist. He has been widely considered the wealthiest American of all time and the richest person in modern history. Rockefeller was ...

of Standard Oil Company,

Henry Charles Carey Henry Charles Carey (December 15, 1793 – October 13, 1879) was the leading 19th-century economist of the American School, and chief economic adviser to U.S. President Abraham Lincoln. Carey is best known for the book ''The Harmony of Interest ...

of the Franklin Fire Insurance Company,

Ringling Brothers and Barnum & Bailey Circus The Ringling Bros. and Barnum & Bailey Circus (also known as the Ringling Bros. Circus, Ringling Bros., the Barnum & Bailey Circus, Barnum & Bailey, or simply Ringling) is an American traveling circus company billed as The Greatest Show on Ea ...

Atari Corporation Atari Corporation was an American manufacturer of computers and video game consoles. It was founded by Jack Tramiel on May 17, 1984, as Tramel Technology, Ltd., but then took on the Atari name less than two months later when Warner Communica ...

Eddie Rickenbacker Edward Vernon Rickenbacker or Eddie Rickenbacker (October 8, 1890 – July 23, 1973) was an American fighter pilot in World War I and a Medal of Honor recipient.Eastern Air Lines, Tucker Corporation and many others.

As a hobby

A large part of scripophily is the area of financial history. Over the years there have been millions of companies which needed to raise money for their business. In order to do so, the founders of these companies issued

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

. Generally speaking, they either issued an equity security in the form of stock or a debt security in the form of a bond. However, there are many varieties of equity and debt instruments. They can be

common stock Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Comm ...

preferred stock Preferred stock (also called preferred shares, preference shares, or simply preferreds) is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt inst ...

, warrants, cumulative preferred stocks, bonds,

zero-coupon bond A zero coupon bond (also discount bond or deep discount bond) is a bond in which the face value is repaid at the time of maturity. Unlike regular bonds, it does not make periodic interest payments or have so-called coupons, hence the term zero- ...

long term bonds Long may refer to: Measurement * Long, characteristic of something of great duration * Long, characteristic of something of great length * Longitude (abbreviation: long.), a geographic coordinate * Longa (music), note value in early music mensu ...

(over 15 years) and any combination thereof. Each certificate is a piece of history about a company and its business. Some companies became major successes, while others were acquired and merged with other companies. Some companies and industries were successful until they were replaced by new technologies. Some companies have been the center of scandal or fraud. The color, paper, signatures, dates, stamps, cancellations, borders, pictures,

vignette Vignette may refer to: * Vignette (entertainment), a sketch in a sketch comedy * Vignette (graphic design), decorative designs in books (originally in the form of leaves and vines) to separate sections or chapters * Vignette (literature), short, i ...

s, industry, stockbroker, name of company, transfer agent, printer, and holder name all add to the uniqueness of the hobby. A lot of companies either were never successful or went bankrupt, so that their certificates became worthless pieces of paper until the hobby of scripophily began. The

mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic ...

boom in the 1850s,

railroad Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...

construction in the 1830s, the oil boom in the 1870s,

telegraphy Telegraphy is the long-distance transmission of messages where the sender uses symbolic codes, known to the recipient, rather than a physical exchange of an object bearing the message. Thus flag semaphore is a method of telegraphy, whereas ...

(1850s), the

automobile industry The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industries by revenue (from 16 % such ...

beginning around 1900,

aviation Aviation includes the activities surrounding mechanical flight and the aircraft industry. ''Aircraft'' includes fixed-wing and rotary-wing types, morphable wings, wing-less lifting bodies, as well as lighter-than-air craft such as hot a ...

(around 1910), electric power and banks in the 1930s, the airline wars and mergers in the 1970s, cellular telephones (1980s), long distance telephone service in the 1980s and 1990s, and most recently the

Dot-com era The dot-com bubble (dot-com boom, tech bubble, or the Internet bubble) was a stock market bubble in the late 1990s, a period of massive growth in the use and adoption of the Internet. Between 1995 and its peak in March 2000, the Nasdaq Compo ...

and

Enron Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. It was founded by Kenneth Lay in 1985 as a merger between Lay's Houston Natural Gas and InterNorth, both relatively small regional compani ...

all resulted in historically significant certificates being generated and issued. Today, more stocks and bonds are issued electronically, meaning fewer paper certificates are issued as a percentage of actual stock issued. The Internet has played a dramatic role in raising awareness of the hobby. A number of websites now exist that sell old stocks and bonds to include scripophily.com and oldstocks.com.

Guidelines

There are many factors that determine value of a certificate. These include condition, age, historical significance, signatures, rarity, demand for the item,

aesthetics Aesthetics, or esthetics, is a branch of philosophy that deals with the nature of beauty and taste, as well as the philosophy of art (its own area of philosophy that comes out of aesthetics). It examines aesthetic values, often expressed t ...

, type of company, original face value, bankers associated with issuance, transfer stamps, cancellation markings, issued or unissued, printers, and type of engraving process. Condition - The grading scale that could be used in stocks and bonds is shown below. Generally speaking, however, the grading is not used in the hobby as strictly as it is in coins and stamps. Most people acquire certificates for the artwork and history. * Uncirculated - Looks like new, no abnormal markings or folds, no staples, clean signature and no stains * Extremely Fine - Slight traces of wear * Very Fine - Minor traces of wear * Fine - Creased with clear signs of use and wear * Fair - Strong signs of use and wear * Poor - Some damage with heavy signs of wear and staining Age - Usually the older, the more valuable, but not always. Historical significance - What product did the company produce? Was it the first car, airplane, cotton gin, etc. Was the company successful? Was it a fraud? In what era (i.e. during a war, depression, revolution) was the item issued? Signatures - Did anyone famous or infamous sign the certificate? Cross Collecting Themes - Sports, finance, automotive, and railroad enthusiast interest. Newsworthy - Some companies that are in the news (good or bad). Certificate Owner's Name - Was the certificate issued to anyone famous or to a famous company? Rarity - How many of the certificates were issued? How many survived over the years? Is the certificate a low number? Demand for Item - How many people are trying to collect the same certificate? Aesthetics - How does the certificate look? What is in the vignette? What color of ink was used? Does it have fancy borders or writing on it? Type of company - What type of company was it issued for? Does the industry still exist? Has the industry changed a lot over the years? Original Face Value - How much was the stock or bond issued for? Usually, the larger the original face value, the more collectible it is. Bankers associated with Issuance - Who worked on the fund raising efforts? Was it someone famous or a famous bank? Is the bank still in existence? Transfer Stamps - Does the certificate have tax stamps on it? Are the stamps imprinted or attached? Are the stamps valuable or unusual? The_Chase_National_Bank_of_the_City_of_New_York,_Specimen_Stock_Certificate

The_Chase_National_Bank_of_the_City_of_New_York,_Specimen_Stock_Certificate

Cancellation Markings - Are the cancellation markings interesting to the item? Do they detract or add to its history and looks? Issued or Unissued - Was the item issued or unissued? Was the certificate a printer's prototype usually stamped with the word "specimen"? Usually, issued certificates are more valuable and desirable. Printers - Who printed the certificate? Was it a famous printer? Type of Engraving Process - How was the certificate made - By hand? By wood engraving? Steel engraving? Lithograph? Preprinted form? Paper - Was the paper used in the printing high-quality or low-quality? Has it held up over time? Does it have a watermark to prevent counterfeiting?

Scripophily market indices

Due to historical nature of collecting, it makes no sense to track scripophily market using stock market indices like

S&P 500 Index The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of D ...

Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...

or others. However, apart from real time quotes there is a way to do so half-yearly based on the records of three major European market players. These records cover all relevant auction results for 100 selected items, being significant for the worldwide Scripophily market: * HSTM Historic Stocks Market Index

Notes

References

External links

{{Commons category, Scripophily
IBSS International Bond & Share SocietyOld Stock Exchange - Examples of Old Stock and Bond CertificatesScripozine
Scripophily magazine (PDF, free of charge)
Museo digitale della Scripofilia - Digital Museum of ScripophilyProfessional Scripophily Traders Association
Numismatics Securities (finance) de:Historische Wertpapiere lt:Nonvaleurs