Die-Hards Take Stock in Paper Certificates; despite Efforts to Eliminate Them, They Remain a Tangible Marker of Company History

St Louis Post-Dispatch (MO), September 23, 2012 | Go to article overview
Save to active project

Die-Hards Take Stock in Paper Certificates; despite Efforts to Eliminate Them, They Remain a Tangible Marker of Company History


Bob Kerstein loves his paper stock certificates.

At a time when stock trading is dominated by rapid-fire computers, he relishes paper stocks for their palpability. Wall Street seems cryptic and far away, but certificates are something he can see and hold.

They're a pleasant throwback, a tangible marker of company history, a wisp of inky artwork in a canyon of electronic solemnity. So when Facebook went public this year and decided not to print paper stock certificates, Kerstein was disappointed.

"A travesty," he says.

He's used to it. For years, people have been writing the obituary for paper stocks. They're derided as hard to track, easy to lose, out of date and out of place.

And yet they keep sticking around, stubbornly analog in a world gone digital.

Die-hards hoard Enron certificates in hopes they will be worth something someday. They hold on to Bear Stearns because they lost everything on it - or, for a few, because they made a ton of money betting against it.

They scramble for Disney because their kids are into Mickey, and the stock, graced with the image of the famous mouse and Walt Disney himself, looks nice in a frame.

Joe Wildberg, an auto industry retiree in Wolverine, Mich., has been accumulating stocks of old Michigan copper-mining companies since he ran across a few shares in a house he inherited.

"Where else would you find a document going back to the 1840s?" he asks.

Tom Carroll, a sales director in Reston, Va., was a hit at a family reunion when he doled out stock of the old Pennsylvania Railroad, where his grandfather worked for 52 years.

"Everybody was getting them framed and hanging them up to remember our grandfather," he recalls.

Kerstein's favorite is a certificate for a business with the unfortunate name Shadyside Operators. The stock he owns is dated Oct. 29, 1929 - during the most infamous crash in Wall Street history.

Kerstein makes a living hawking paper stocks on a website he founded, Scripophily.com. But of Shadyside, he vows, "I'll never sell."

All about image

Long before companies churned out TV commercials and Twitter feeds, they used stock certificates to establish their public image. They hired artists, picked out elaborate lettering, added fancy borders.

Sometimes the decorations made sense, like drawings of locomotives on stocks for railroad companies. Sometimes they didn't, like pictures of toga-clad warriors on stocks for refrigerator businesses.

But today, paper stocks are, to put it gently, out of place. Finance firms time trades in milliseconds, and banks accept smartphone photos of checks. The government hasn't issued paper versions of Treasury bonds since 1986.

And yet paper stocks command an odd resilience - even odder when you consider how many times people have tried to kill them.

The Depository Trust & Clearing Corp., which handles most of the administrative underpinning of stock trading in the United States, set a goal this summer to eliminate paper stocks, perhaps as early as 2015.

The DTCC likes to point out that more than 700 issuers on U.S. stock exchanges no longer offer paper shares, including big names such as Apple, General Motors and Microsoft. But more than 6,300 still do.

The DTCC can't figure out why. "Having possession of a physical certificate really adds no value to the investor or to anybody else," says Daniel Thieke, managing director of settlement and asset services.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Die-Hards Take Stock in Paper Certificates; despite Efforts to Eliminate Them, They Remain a Tangible Marker of Company History
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?