Stock Certificates

Because of the advances in electronic technology over the last two decades, most stocks are no longer converted into paper certificates. Most people in this day and age buy stock, with no intention of converting it to a paper certificate. They will keep it in their account, with the ability to view it on their monthly paper statement or through their computer, whenever they feel like checking the balance. Most people do not realize that if they wanted to keep their stock in a safe deposit box, they could have the stock converted to a paper share and printed out as a stock certificate. Before the electronic and digital age, that is what people did when stocks were bought and sold. They bought and sold stock certificates as the individual paper shares that they now represent. One share of IBM stock was one piece of paper with some information about IBM emblazed upon it. The new way of tracking stocks is much more environmentally friendly, more accurate for record keeping, and aids in the prevention of stock loss. So even though stock certificates may seem old-fashioned and out-of-date today, they were once the backbones of the American stock market.

Old Stock Certificates Still Have Value

Some old stock certificates may still have value even if they no longer trade under the name on the certificate. Many companies over the years have either merged with another company or changed their name. Knowing this, there are services available that will research your old stock certificate to see if it has monetary value or if it is still even traded. Even if the stock is no longer valid, oftentimes it is determined that the stock certificate may have worth as a collectible item. Most business involving stock certificates today revolves around the collection of stock certificates as a hobby, much in the same way as people who collect stamps.

By Jamie Ward