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Ohio Valley Collect |
What is Scripophily?
The Basics
by Allen Lloyd, MBA, Ph.D.
| Put simply, Scripophily is the collecting of old stock
and bonds. Scripophily is a hobby that has been gaining in
interest in recent years. Many people begin collecting old
stocks and bonds because of their beauty, as examples of fine
engraving, and others collect because of historical significance. Corporations use stocks and bonds to obtain money to better run the corporations business. Corporations frequently issue new stocks and bonds for business expansion. Usually the stocks and bonds are sold in a market place known as an Exchange. Stocks are sold based on a price determined by investors. If an investor believes that the corporation is a good one and likely to grow and make money, the investor offers a bid price of how much the investor is willing to pay for a share in the corporations stock if the seller agrees the sale takes place. Over time, when many investors believe that the corporation will do well, prices generally go up, if the outlook is not good, prices will tend to go down. When investors buy stock shares in a corporation they are buying a part interest in the company. Buy one share in a company, have a small interest. Buy a lot of shares and have a bigger interest. Share holders generally have voting rights in the corporation and have a say in how the corporation is operated. Control of a corporation can be taken over through the purchase of large quantities of stock shares in a corporation. Stock share prices fluctuate over time. Some investors buy shares for the long term and others speculate on short term changes in price for the shares. Millions of shares are traded each day the markets are open for business. There are stock exchanges all around the world. Bonds are different from stocks. Bonds are loans made to corporations by investors. Bond holders do not have voting rights as the shareholders do. Bonds have a guaranty to pay interest to the bond holder over time. There are many types of corporate bonds that have been used over the years. Some bonds are registered by the corporation to the investor and others are known as Coupon Bonds where coupons are attached to the bonds and redeemed at certain dates when the corporation will pay the holder interest. Scripophily is the collecting of stock shares and bonds that are no longer in the market place as an investment. Scripophily shares are not traded on stock exchanges. These certificates do however have value within the Scripophily collecting community. Some stock and bond certificates are worth more today as a collector item than the shares were worth as a share in a stock market in the past. Scripophily stocks and bonds sold by Ohio Valley Collect have no market value on any stock or bond exchange, these certificates have collector value only. However, it should be noted that as more and more collectors take part in Scripophily, prices do go up based on the demand for examples of old shares. As with shares bought and sold in Exchanges where there are no guarantee's that a stock shares price will go up, likewise, there are no guarantee's that Scripophily certificates will gain in value either. |
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