Scripophily
Encyclopedia
Scripophily is the study and collection of stock
and bond
certificates. A specialized field of numismatics
, scripophily is an interesting area of collecting due to both the inherent beauty of some historical documents as well as the interesting historical context of each document.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
. Occasionally, an old stock document will be found that still has value as a stock in a successor company.
around 1970. The word "scripophily" was coined by combining words from English
and Greek
. The word "scrip" represents an ownership right and the word "philos" means to love. Today there are thousands of collectors worldwide (Scripophilists or Scripophiliacs) 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. In fact, over the past several years, the hobby has exploded in popularity.
Many collectors like the historical significance of certificates. Dot com companies and scandals have been particularly popular. Others prefer the beauty of older stocks and bonds that were printed in various colors with fancy artwork and ornate engraving.
Many autograph collectors are found in this field, looking for signed certificates from John D. Rockefeller
of Standard Oil Company, Henry Carey
of the Franklin Fire Insurance Company, Ringling Brothers and Barnum & Bailey Circus, Atari Corporation
, Eddie Rickenbacker
as president of Eastern Air Lines
, Broadband.com, Tucker Corporation and many others.
. 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
, preferred stock
, warrants
, cumulative preferred stocks, bonds, zero-coupon bonds, long term bonds (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. The color, paper, signatures, dates, stamps, cancellations, borders, pictures, vignette
s, industry, stock broker, 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
boom in the 1850s, railroad construction in the 1830s, the oil boom
in the 1870s, telegraphy
(1850s), the automobile industry beginning around 1900, aviation
(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 and Enron
all resulted in historically significant certificates being generated and issued.
With the existence of the Internet, more and more stocks and bonds are issued electronically, meaning fewer paper certificates are issued as a percentage of actual stock issued. However, the Internet has also played a major role in creating awareness of the hobby as can be seen at Scripophily.com.
There are many factors that determine value of a certificate. These include condition, age, historical significance, signatures, rarity, demand for the item, aesthetics
, 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.
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?
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 - imprinted or attached? Are the stamps valuable or unusual?
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 use in the printing high quality or low quality? Has it held up over time? Does it have a watermark to prevent counterfeiting?
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
and bond
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
certificates. A specialized field of numismatics
Numismatics
Numismatics is the study or collection of currency, including coins, tokens, paper money, and related objects. While numismatists are often characterized as students or collectors of coins, the discipline also includes the broader study of money and other payment media used to resolve debts and the...
, scripophily is an interesting 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
Engraving is the practice of incising a design on to a hard, usually flat surface, by cutting grooves into it. The result may be a decorated object in itself, as when silver, gold, steel, or glass are engraved, or may provide an intaglio printing plate, of copper or another metal, for printing...
. Occasionally, an old stock document will be found that still has value as a stock in a successor company.
History
Scripophily, the collecting of canceled old stocks and bonds, gained recognition as a hobbyHobby
A hobby is a regular activity or interest that is undertaken for pleasure, typically done during one's leisure time.- Etymology :A hobby horse is a wooden or wickerwork toy made to be ridden just like a real horse...
around 1970. The word "scripophily" was coined by combining words from English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
and Greek
Greek language
Greek is an independent branch of the Indo-European family of languages. Native to the southern Balkans, it has the longest documented history of any Indo-European language, spanning 34 centuries of written records. Its writing system has been the Greek alphabet for the majority of its history;...
. The word "scrip" represents an ownership right and the word "philos" means to love. Today there are thousands of collectors worldwide (Scripophilists or Scripophiliacs) 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. In fact, over the past several years, the hobby has exploded in popularity.
Many collectors like the historical significance of certificates. Dot com companies and scandals have been particularly popular. Others prefer the beauty of older stocks and bonds that were printed in various colors with fancy artwork and ornate engraving.
Many autograph collectors are found in this field, looking for signed certificates from John D. Rockefeller
John D. Rockefeller
John Davison Rockefeller was an American oil industrialist, investor, and philanthropist. He was the founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Rockefeller revolutionized the petroleum industry and defined the structure of...
of Standard Oil Company, Henry Carey
Henry Carey
Henry Carey may refer to:*Henry Charles Carey , American economist*Henry Carey , dramatist and songwriter*Henry Carey, 1st Baron Hunsdon , politician, general and potential illegitimate son of Henry VIII of England*Henry Carey, 1st Earl of Dover Henry Carey may refer to:*Henry Charles Carey...
of the Franklin Fire Insurance Company, Ringling Brothers and Barnum & Bailey Circus, Atari Corporation
Atari Corporation
Atari Corporation was a manufacturer of computers and video game consoles from 1984 to 1996. Atari Corp. was founded in July of 1984 when Warner Communications sold the home computing and game console divisions of Atari to Jack Tramiel. Its chief products were the Atari ST, Atari XE, Atari 7800,...
, Eddie Rickenbacker
Eddie Rickenbacker
Edward Vernon Rickenbacker was an American fighter ace in World War I and Medal of Honor recipient. He was also a race car driver and automotive designer, a government consultant in military matters and a pioneer in air transportation, particularly as the longtime head of Eastern Air Lines.-Early...
as president of Eastern Air Lines
Eastern Air Lines
Eastern Air Lines was a major United States airline that existed from 1926 to 1991. Before its dissolution it was headquartered at Miami International Airport in unincorporated Miami-Dade County, Florida.-History:...
, Broadband.com, Tucker Corporation and many others.
Scripophily 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 securitiesSecurity (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
. 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
Common stock is a form of corporate equity ownership, a type of security. It is called "common" to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive their funds after preferred stock holders, bondholders, creditors, etc...
, preferred stock
Preferred stock
Preferred stock, also called preferred shares, preference shares, or simply preferreds, is a special equity security that has properties of both an equity and a debt instrument and is generally considered a hybrid instrument...
, warrants
Warrant (finance)
In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date....
, cumulative preferred stocks, bonds, zero-coupon bonds, long term bonds (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. The color, paper, signatures, dates, stamps, cancellations, borders, pictures, vignette
Vignette (philately)
In philately, the vignette is the central part of a postage stamp design, such as, a monarch's head or a pictorial design, which often shades off gradually to the edges of the stamp....
s, industry, stock broker, 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
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
boom in the 1850s, railroad construction in the 1830s, the oil boom
Oil boom
An oil boom is a boom in the oil producing sector of an economy. Generally, this short period initially brings economical benefits, in term of increased GDP growth, but might later lead to a resource curse.-Consequences:...
in the 1870s, telegraphy
Telegraphy
Telegraphy is the long-distance transmission of messages via some form of signalling technology. Telegraphy requires messages to be converted to a code which is known to both sender and receiver...
(1850s), the automobile industry beginning around 1900, aviation
Aviation
Aviation is the design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft. Aviation is derived from avis, the Latin word for bird.-History:...
(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 and Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
all resulted in historically significant certificates being generated and issued.
With the existence of the Internet, more and more stocks and bonds are issued electronically, meaning fewer paper certificates are issued as a percentage of actual stock issued. However, the Internet has also played a major role in creating awareness of the hobby as can be seen at Scripophily.com.
Scripophily guidelines
Aesthetics
Aesthetics is a branch of philosophy dealing with the nature of beauty, art, and taste, and with the creation and appreciation of beauty. It is more scientifically defined as the study of sensory or sensori-emotional values, sometimes called judgments of sentiment and taste...
, 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?
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.
Transfer Stamps - Does the certificate have tax stamps on it - imprinted or attached? Are the stamps valuable or unusual?
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 use in the printing high quality or low quality? Has it held up over time? Does it have a watermark to prevent counterfeiting?
External links
- Securities and Exchange Commission
- Collecting Stocks & Bonds: A collector's story
- Professional Scripophily Traders Association
- Wertpapierwelt the Swiss Museum of Historical Shares and Bonds (English pages)
- The Museum of American Finance the U.S. financial history museum located in New York
- Example of Playboy's share at scripophily.net
- The official site for collectors of Scripohilic material in Norway
- Franky's Scripophily BlogSpot - international blog about collecting antique stocks and bonds
- Signatures of Samuel Clemens - Mark Twain & Unionville gold discoverer on 1863 Nevada territorial stock
- Scripophily in Finland A thorough overview of the hobby in Finland today. Written in English for foreigners.
