In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include corporate bonds; the bond is a debt security, under which the issuer owes the holders a debt and is obliged to pay them interest or to repay the principal at a date, termed the maturity date. Interest is payable at fixed intervals; the bond is negotiable, that is, the ownership of the instrument can be transferred in the secondary market. This means that once the transfer agents at the bank medallion stamp the bond, it is liquid on the secondary market, thus a bond is a form of loan or IOU: the holder of the bond is the lender, the issuer of the bond is the borrower, the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit or short-term commercial paper are considered to be money market instruments and not bonds: the main difference is the length of the term of the instrument.
Bonds and stocks are both securities, but the major difference between the two is that stockholders have an equity stake in a company, whereas bondholders have a creditor stake in the company. Being a creditor, bondholders have priority over stockholders; this means they will be repaid in advance of stockholders, but will rank behind secured creditors, in the event of bankruptcy. Another difference is that bonds have a defined term, or maturity, after which the bond is redeemed, whereas stocks remain outstanding indefinitely. An exception is an irredeemable bond, such as a consol, a perpetuity, that is, a bond with no maturity. In English, the word "bond" relates to the etymology of "bind". In the sense "instrument binding one to pay a sum to another", use of the word "bond" dates from at least the 1590s. Bonds are issued by public authorities, credit institutions and supranational institutions in the primary markets; the most common process for issuing bonds is through underwriting. When a bond issue is underwritten, one or more securities firms or banks, forming a syndicate, buy the entire issue of bonds from the issuer and re-sell them to investors.
The security firm takes the risk of being unable to sell on the issue to end investors. Primary issuance is arranged by bookrunners who arrange the bond issue, have direct contact with investors and act as advisers to the bond issuer in terms of timing and price of the bond issue; the bookrunner is listed first among all underwriters participating in the issuance in the tombstone ads used to announce bonds to the public. The bookrunners' willingness to underwrite must be discussed prior to any decision on the terms of the bond issue as there may be limited demand for the bonds. In contrast, government bonds are issued in an auction. In some cases, both members of the public and banks may bid for bonds. In other cases, only market makers may bid for bonds; the overall rate of return on the bond depends on the price paid. The terms of the bond, such as the coupon, are fixed in advance and the price is determined by the market. In the case of an underwritten bond, the underwriters will charge a fee for underwriting.
An alternative process for bond issuance, used for smaller issues and avoids this cost, is the private placement bond. Bonds sold directly to buyers may not be tradeable in the bond market. An alternative practice of issuance was for the borrowing government authority to issue bonds over a period of time at a fixed price, with volumes sold on a particular day dependent on market conditions; this was called a tap bond tap. Nominal, par, or face amount is the amount on which the issuer pays interest, which, most has to be repaid at the end of the term; some structured bonds can have a redemption amount, different from the face amount and can be linked to the performance of particular assets. The issuer has to repay the nominal amount on the maturity date; as long as all due payments have been made, the issuer has no further obligations to the bond holders after the maturity date. The length of time until the maturity date is referred to as the term or tenor or maturity of a bond; the maturity can be any length of time, although debt securities with a term of less than one year are designated money market instruments rather than bonds.
Most bonds have a term of up to 30 years. Some bonds have been issued with terms of 50 years or more, there have been some issues with no maturity date. In the market for United States Treasury securities, there are three categories of bond maturities: short term: maturities between one and five years; the coupon is the interest rate. This rate is fixed throughout the life of the bond, it can vary with a money market index, such as LIBOR, or it can be more exotic. The name "coupon" arose because in the past, paper bond certificates were issued which had coupons attached to them, one for each interest payment. On the due dates the bondholder would hand in the coupon to a bank in exchange for the interest payment. Interest can be paid at different frequencies: semi-annual, i.e. every 6 months, or annual. The yield is the rate of return received from investing in the bond, it refers either to The current yield, or running yield
A cheque, or check, is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing the cheque, known as the drawer, has a transaction banking account where their money is held; the drawer writes the various details including the monetary amount, a payee on the cheque, signs it, ordering their bank, known as the drawee, to pay that person or company the amount of money stated. Cheques are a type of bill of exchange and were developed as a way to make payments without the need to carry large amounts of money. Paper money evolved from promissory notes, another form of negotiable instrument similar to cheques in that they were a written order to pay the given amount to whoever had it in their possession. A cheque is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specified transactional account held in the drawer's name with that institution.
Both the drawer and payee may be legal entities. Cheques are order instruments, are not in general payable to the bearer as bearer instruments are, but must be paid to the payee. In some countries, such as the US, the payee may endorse the cheque, allowing them to specify a third party to whom it should be paid. Although forms of cheques have been in use since ancient times and at least since the 9th century, it was during the 20th century that cheques became a popular non-cash method for making payments and the usage of cheques peaked. By the second half of the 20th century, as cheque processing became automated, billions of cheques were issued annually. Since cheque usage has fallen, being replaced by electronic payment systems. In an increasing number of countries cheques have either become a marginal payment system or have been phased out; the spellings check and cheque were used interchangeably from the 17th century until the 20th century. However, since the 19th century, the spelling cheque has become standard for the financial instrument in the Commonwealth and Ireland, while check is used only for other meanings, thus distinguishing the two definitions in writing.
In American English, the usual spelling for both is check. Etymological dictionaries attribute the financial meaning to come from "a check against forgery", with the use of "check" to mean "control" stemming from a check in chess, a term which came into English through French, Latin and from the Persian word "shah" or "king"; the cheque had its origins in the ancient banking system, in which bankers would issue orders at the request of their customers, to pay money to identified payees. Such an order was referred to as a bill of exchange; the use of bills of exchange facilitated trade by eliminating the need for merchants to carry large quantities of currency to purchase goods and services. There is early evidence of using cheques. In India, during the Mauryan period, a commercial instrument called the adesha was in use, an order on a banker desiring him to pay the money of the note to a third person; the ancient Romans are believed to have used an early form of cheque known as praescriptiones in the 1st century BCE.
Beginning in the third century CE, banks in Persian territory began to issue letters of credit. These letters were termed čak, meaning "document" or "contract"; the čak became the sakk used by traders in the Abbasid Caliphate and other Arab-ruled lands. Transporting a paper sakk was more secure than transporting money. In the ninth century, a merchant in one country could cash a sakk drawn on his bank in another country. In the 13th century in Venice the bill of exchange was developed as a legal device to allow international trade without the need to carry large amounts of gold and silver, their use subsequently spread to other European countries. In the early 1500s in the Dutch Republic, to protect large accumulations of cash, people began depositing their money with "cashiers"; these cashiers held the money for a fee. Competition drove cashiers to offer additional services including paying money to any person bearing a written order from a depositor to do so, they kept the note as proof of payment.
This concept went on to spread to elsewhere. By the 17th century, bills of exchange were being used for domestic payments in England. Cheques, a type of bill of exchange began to evolve, they were called drawn notes, because they enabled a customer to draw on the funds that he or she had in the account with a bank and required immediate payment. These were handwritten, one of the earliest known still to be in existence was drawn on Messrs Morris and Clayton and bankers based in the City of London, dated 16 February 1659. In 1717, the Bank of England pioneered the first use of a pre-printed form; these forms were printed on "cheque paper" to prevent fraud, customers had to attend in person and obtain a numbered form from the cashier. Once written, the cheque was brought back to the bank for settlement; the suppression of banknotes in eighteenth-century England further promoted the use of cheques. Until about 1770, an informal exchange of cheques took place between London banks. Clerks of each bank visited all the other banks to exchange cheques, whilst keeping a tally of balances between them until they settled with each other.
Daily cheque clearing began around 1770 when the bank clerks met at the Five Bells, a tavern in Lombard Street in the City of London, to exchange all their cheques in
Hammered coinage is the most common form of coins produced since the invention of coins in the first millennium BC until the early modern period of c. the 15th–17th centuries, contrasting to the cast coinage and the developed milled coinage. Hammered coins were produced by placing a blank piece of metal of the correct weight between two dies, striking the upper die with a hammer to produce the required image on both sides; the planchet was cast from a mold. The bottom die was counter sunk in a log or other sturdy surface and was called a pile. One of the minters held the die for the other side, in his hand while it was struck either by himself or an assistant. Experimental archeology suggests that a lower die could be expected to last for up to 10,000 strikes depending on the level of wear deemed acceptable. Upper dies seem to have a far greater range of lives with usable lives ranging from just over 100 strikes to nearly 8000 being reported. Combining archaeological evidence with historic records suggests ancient coin producers could get as many as 47,000 strikes out of an individual die.
In history, in order to increase the production of coins, hammered coins were sometimes produced from strips of metal of the correct thickness, from which the coins were subsequently cut out. Both methods of producing hammered coins meant that it was difficult to produce coins of a regular diameter. Coins were liable to suffer from "clipping" where unscrupulous people would remove slivers of precious metal since it was difficult to determine the correct diameter of the coin. Coins were vulnerable to "sweating", when silver coins would be placed in a bag that would be vigorously shaken; this would produce silver dust, which could be removed from the bag. The ability to fashion coins from machines caused hammered coins to become obsolete during the 17th century, they were still made in Venice until the 1770s. France became the first country to adopt a full machine-made coin in 1643. In England, the first non-hammered coins were produced in the reign of Queen Elizabeth I in the 1560s, but while machine-produced coins were experimentally produced at intervals over the next century, the production of hammered coins did not end until 1662.
An alternative method of producing early coins found in Asia in China, was to cast coins using molds. This method of coin production continued in China into the nineteenth century. Up to a couple of dozen coins could be produced at one time from a single mold, when a'tree' of coins would be produced and the individual coins would be broken off. Milled coinage Ancient Minting Process
The stock of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are known as "stocks." A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares. This entitles the stockholder to that fraction of the company's earnings, proceeds from liquidation of assets, or voting power dividing these up in proportion to the amount of money each stockholder has invested. Not all stock is equal, as certain classes of stock may be issued for example without voting rights, with enhanced voting rights, or with a certain priority to receive profits or liquidation proceeds before or after other classes of shareholders. Stock can be bought and sold or on stock exchanges, such transactions are heavily regulated by governments to prevent fraud, protect investors, benefit the larger economy; as new shares are issued by a company, the ownership and rights of existing shareholders are diluted in return for cash to sustain or grow the business.
Companies can buy back stock, which lets investors recoup the initial investment plus capital gains from subsequent rises in stock price. Stock options, issued by many companies as part of employee compensation, do not represent ownership, but represent the right to buy ownership at a future time at a specified price; this would represent a windfall to the employees if the option is exercised when the market price is higher than the promised price, since if they sold the stock they would keep the difference. A person who owns a specific percentage of the share has the ownership of the corporation proportional to his share; the shares together form stock. The stock of a corporation is partitioned into shares, the total of which are stated at the time of business formation. Additional shares may subsequently be authorized by the existing shareholders and issued by the company. In some jurisdictions, each share of stock has a certain declared par value, a nominal accounting value used to represent the equity on the balance sheet of the corporation.
In other jurisdictions, shares of stock may be issued without associated par value. Shares represent a fraction of ownership in a business. A business may declare different types of shares, each having distinctive ownership rules, privileges, or share values. Ownership of shares may be documented by issuance of a stock certificate. A stock certificate is a legal document that specifies the number of shares owned by the shareholder, other specifics of the shares, such as the par value, if any, or the class of the shares. In the United Kingdom, Republic of Ireland, South Africa, Australia, stock can refer to different financial instruments such as government bonds or, less to all kinds of marketable securities. Stock takes the form of shares of either common stock or preferred stock; as a unit of ownership, common stock carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it does not carry voting rights but is entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders.
Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares any time after a predetermined date. Shares of such stock are called "convertible preferred shares". New equity issue may have specific legal clauses attached that differentiate them from previous issues of the issuer; some shares of common stock may be issued without the typical voting rights, for instance, or some shares may have special rights unique to them and issued only to certain parties. New issues that have not been registered with a securities governing body may be restricted from resale for certain periods of time. Preferred stock may be hybrid by having the qualities of bonds of fixed returns and common stock voting rights, they have preference in the payment of dividends over common stock and have been given preference at the time of liquidation over common stock. They have other features of accumulation in dividend. In addition, preferred stock comes with a letter designation at the end of the security.
B, whereas Class "A" shares of ORION DHC, Inc will sell under ticker OODHA until the company drops the "A" creating ticker OODH for its "Common" shares only designation. This extra letter does not mean that any exclusive rights exist for the shareholders but it does let investors know that the shares are considered for such, these rights or privileges may change based on the decisions made by the underlying company. "Rule 144 Stock" is an American term given to shares of stock subject to SEC Rule 144: Selling Restricted and Control Securities. Under Rule 144, restricted and controlled securities are acquired in unregistered form. Investors either purchase or take ownership of these securities through private sales from the issuing company or from an affiliate of the issuer. Investors wishing to sell these securities are subject to different rules than those selling traditional common or preferred stock; these individuals will only be allowed to liquidate their securities after meeting the specific conditions set forth by SEC Rule 144.
Historical money of Tibet
The use of historical money in Tibet started in ancient times, when Tibet had no coined currency of its own. Bartering was common, gold was a medium of exchange, shell money and stone beads were used for small purchases. A few coins from other countries were occasionally in use. Coins were first used in a more extensive way in the 17th century: these were silver coins supplied by Nepal. There were however various difficulties with this system. In 1763/64 and 1785 the first silver coins were struck in Tibet. In 1792 the first mass-produced silver coins were created under Tibetan authority. Coins bearing Tibetan inscriptions only were subsequently replaced by issues which had Chinese and Tibetan legends; this lasted until the 1830s. In 1840 purely Tibetan coinage was struck under Tibetan authority, this coinage continued being made until 1954, with only two short interruptions when Sino-Tibetan coins were issued. In 1910 the Tibetan government started producing a large range of copper and silver coins of different denominations, in 1918 to 1921, gold coins were struck.
Tibetan banknotes were first issued in 1913. From 1955 to 1959 no more Tibetan coins were created, although banknotes were still being printed, by 1959 all of the money was being replaced with renminbi yuan. In ancient Tibet, the use of coins was insignificant. Tibet’s main neighbours, India and China had had their own coinage since time immemorial. Ancient Tibet however had no locally-struck coinage, although a certain number of coins from Nepal, Chinese Turkestan and China had reached Tibet by way of trade, or as donations to important monasteries; some of these foreign coins may have entered circulation, but they did not develop into an important instrument for transactions in daily life, because most of the trade within Tibet and the foreign trade were carried out via barter. Tibet had the biggest trade volume with China, the main barter items being horses from north-eastern Tibet, which were traded for Chinese tea. Tibet exported medicinal herbs, stag antlers and gold to China, apart from tea, the Tibetan traders imported silk cloth and silver from China.
The trade volume with Tibet's southern neighbours, India and Bhutan, was much smaller. The Tibetan traders exchanged salt and wool for grain with these countries. Traditionally one measure of salt was traded for one measure of grain at the border with Nepal and India. Other, less important export goods were yak tails and live animals. For the 17th century, the export of falcons to India is recorded. For large transactions within Tibet, gold dust and Chinese silver ingots were used; these ingots came in different shapes. For small transactions, various consumer goods could be used. Among others, these were areca nuts, ceremonial scarves and tea Tea was traded in the form of tea bricks; this developed into the most important medium of exchange in the 19th century, when a regular coinage had been introduced into Tibet. For small purchases and stone beads are recorded as being in use as money in ancient Tibet Before the government of the 5th Dalai Lama was established various small gold ingots circulated in Tibet, some of which were marked with stamps.
So far there exists no consent. We are well informed about this type of gold currency, called "gold sho" because officials of finance of the new Tibetan government received tax payments in the form of these small gold ingots; the officials had to convert these into the current monetary standard. In order to assess the fineness of these pieces one used a standardized gold weight unit, referred to as Sewa The following types of gold pieces are recorded in lists of the finance officials: Furthermore, pieces designated as Tsangsho are mentioned, but their gold weight is not specified. Lastly a form of gold currency named. Fifteen Sertam corresponded to one standard Changsho; the currency unit Gursho was mentioned by Sarat Chandra Das in his Tibetan-English Dictionary. According to this author 1 Gursho = 24 sewas. Chinese silver ingots were used until the 20th century for larger transactions, they were referred to as rta rmig ma and weighed 50 tael, or 50 srang. There existed silver ingots of smaller size, named gyag rmig ma and yet smaller ones, referred to as ra rmig ma.
In the early 20th century the large ingots were worth about 60–70 Indian rupees, the ingots of medium size 12–14 rupees and the smallest ingots 2–3 rupees. British-Indian authors refer to the silver bars found in Tibet, some of which were imported from Kashgar, as "yambus", an expression which derives from Chinese yuanbao; the first coinage, extensively used in southern Tibet was silver coins, which were supplied by the Nepalese Malla Kingdoms and the first kings of the subsequent Shah dynasty from about 1640 until 1791. Tibet provided the silver for the striking of these coins and received coins at the same weight, the Nepalese reaping a handsome profit by alloying
Coinage of India
Coinage of India, issued by imperial dynasties and middle kingdoms, began anywhere between the 1st millennium BCE to the 6th century BCE, consisted of copper and silver coins in its initial stage. Scholars remain divided over the origins of Indian coinage. Cowry shells was first used in India as commodity money; the Indus Valley Civilization dates back between 3300 BCE and 1750 BCE. What is known, however, is that metal currency was minted in India well before the Mauryan Empire, as radio carbon dating indicates, before the 5th century BCE; the practice of minted coins spread to the Indo-Gangetic Plain from West Asia. The coins of this period were called Karshapanas or Pana; these earliest Indian coins, are unlike those circulated in West Asia, were not disk-shaped but rather stamped bars of metal, suggesting that the innovation of stamped currency was added to a pre-existing form of token currency, present in the Mahajanapada kingdoms of the Indian Iron Age. Mahajanapadas that minted their own coins included Gandhara, Kuru, Shakya and Surashtra.
The tradition of Indian coinage was further influenced by the coming of Turkic and Mughal invaders in India. The East India Company introduced uniform coinage in the 19th century CE, these coins were imitated by the modern nation states of Republic of India, Sri Lanka, Bangladesh. Numismatics plays a valuable role in determining certain period of Indian history. There is evidence of countable units of precious metal being used for exchange from the Vedic period onwards. A term Nishka appears in this sense in the Rigveda. Texts speak of cows given as gifts being adorned with pādas of gold. A pāda a quarter, would have been a quarter of some standard weight. A unit called Śatamāna a'hundred standard', representing 100 krishnalas is mentioned in Satapatha Brahmana. A commentary on Katyayana Srautasutra explains that a Śatamāna could be 100 rattis. All these units referred to gold currency in some form but they were adopted to silver currency. Panini's grammar text indicates, he mentions that something worth a nishka is called naishka and something worth a Śatamāna is called a Śatamānam etc.
The units were used to represent the assets of individuals, naishka‐śatika or naishka‐sahasrika. Panini uses the term rūpa to mean a piece of precious metal used as a coin, a rūpya to mean a stamped piece of metal, a coin in the modern sense; the term rūpya continues into the modern usage as the rupee. Some scholars state; the gold to silver ratio in India was 10 to 1 or 8 to 1. In contrast, in the neighbouring Persia, it was 13 to 1; this value differential would have incentivised the exchange of gold for silver, resulting in an increasing supply of silver in India. India developed some of the world's first coins, but scholars debate which coin was first and when. Sometime around 600BC in the lower Ganges valley in eastern India a coin called a punchmarked Karshapana was created. According to Hardaker, T. R. the origin of Indian coins can be placed at 575 BCE and according to P. L. Gupta in the seventh century BCE. According to Page. E, Kasi and Magadha coins can be the oldest ones from the Indian Subcontinent dating back to 7th century BC and kosambi findings indicate coin circulation towards the end of 7th century BC.
It is noted that some of the Janapadas like shakiya during Buddha's time were minting coins both made of silver and copper with their own marks on them. Punch-marked coins were a type of early Coinage of India, dating to between about the 6th and 2nd centuries BCE. There are vast uncertainties regarding the actual time punch-marked coinage started in India, with proposal ranging from 1000 BCE to 500 BCE. However, the study of the relative chronology of these coins has established that the first punch-marked coins only had one or two punches, with the number of punches increasing over time; the first coins in India may have been minted around the 6th century BCE by the Mahajanapadas of the Indo-Gangetic Plain, The coins of this period were punch-marked coins called Puranas, Karshapanas or Pana. Several of these coins had a single symbol, for example, Saurashtra had a humped bull, Dakshin Panchala had a Swastika, like Magadha, had several symbols; these coins were made with an irregular shape.
This was gained by cutting up silver bars and making the correct weight by cutting the edges of the coin. They are mentioned in the Manu and Buddhist Jataka stories and lasted three centuries longer in the south than the north. Shurasena SurashtraEarly coins of India were made of silver and copper, bore animal and plant symbols on them. Saurashtra Janapada coins are the earliest die-struck figurative coins from ancient India from 450-300 BCE which are perhaps the earliest source of Hindu representational forms. Most coins from Surashtra are 1g in weight. Rajgor believes they are therefore 0.93 gm. Mashakas of 2 rattis and double mashakas of 4 rattis are known; the coins appear to be uniface. However, most of the coins appear to be overstruck over other Surashtra coins and thus there is the remnant of a previous symbol on the reverse, as well as sometimes under the obverse symbol as well. Coin finds in the Chaman Hazouri hoard in Kabul or the Shaikhan Dehri hoard in Pushkalavati have revealed numerous Achaemeni
Scripophily is the study and collection of stock and bond certificates. A specialized field of numismatics, 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. An old stock certificate will be found that still has value as a stock in a successor company. Scripophily, the collecting of old stocks and bonds, gained recognition as a hobby around 1970; the word "scripophily" was coined by combining words from Greek. The word "scrip" represents an ownership right and the word "philos" means to love. Today, there are thousands of collectors worldwide in search of scarce and popular stocks and bonds. Collectors who come from a variety of businesses enjoy this as a hobby, although there are many who 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 popular issuances. A recent addition to the hobby is collecting live shares issued in one's name. Common companies that issue stock certificates include Walt Disney, Harley-Davidson, McDonald's, Google, Ford Motors, Coca-Cola, 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 of Standard Oil Company, Henry Charles Carey of the Franklin Fire Insurance Company, Ringling Brothers and Barnum & Bailey Circus, Atari Corporation, Eddie Rickenbacker as president of Eastern Air Lines, Tucker Corporation and many others. A large part of scripophily is the area of financial history. Over the years there have been millions of companies. In order to do so, the founders of these companies issued securities. 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 debt instruments.
They can be common stock, preferred stock, cumulative preferred stocks, zero-coupon bonds, long term bonds and any combination thereof. Each certificate is a piece of history about its business; some companies became major successes, while others were merged with other companies. Some companies and industries were successful; some companies have been the center of fraud. The color, signatures, stamps, borders, vignettes, stock broker, name of company, transfer agent 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, the automobile industry beginning around 1900, electric power and banks in the 1930s, the airline wars and mergers in the 1970s, cellular telephones, long distance telephone service in the 1980s and 1990s, most the Dot-com era and Enron all resulted in 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. There are many factors; these include condition, historical significance, rarity, demand for the item, type of company, original face value, bankers associated with issuance, transfer stamps, cancellation markings, issued or unissued and type of engraving process. Condition - The grading scale that could be used in stocks and bonds is shown below. Speaking, the grading is not used in the hobby as as it is in coins and stamps. Most people acquire certificates for the 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 stainingAge - Usually the older the more valuable, but not always.
Historical significance - What product did the company produce? Was it the first car, cotton gin, etc. Was the company successful? Was it a fraud? In what era was the item issued? Signatures - Did anyone famous or infamous sign the certificate? Cross Collecting Themes - Sports, finance and railroad enthusiast interest. Newsworthy - Some companies that are in the news. 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