In their glory days, paper stock certificates were mini artworks, embellished with engraved images of eagles, cherubs, Gold Rush miners and sheaves of wheat. Or even sexy Playboy centerfolds.
Today, they’re financial-document dinosaurs, going the paperless way of U.S. savings bonds and Social Security checks. In an era of instant electronic stock trading, getting a paper stock certificate is downright difficult.
“It’s a bygone era,” said Cameron Beck, investment adviser with UBS Financial Services in Sacramento, Calif., who said it’s been more than 10 years since a client even asked for a paper certificate.
And when clients do ask, companies like UBS and Charles Schwab charge $500 to handle the transaction.
While most of Wall Street’s publicly traded companies will issue paper shares if asked, more than 420 companies — Apple, Chevron, Intel and Visa — no longer do. According to the Depository Trust & Clearing Corp., stock trading could be virtually paper-free in three to five years.
But even as paper certificates disappear from the financial world, they live on as specialty gifts and collectibles, whether for sentimental, artistic or history-laden reasons.
Judging by numerous comments to the Sacramento Bee recently, many old certificates are family treasures, harkening to a time when the buyer’s name was inked in handwritten flourishes and shares cost as little as 10 cents each. Even the company names are colorful relics of the past: Sawdust Burner Co., Spider & Wasp, Gray Goose Airways.
“They struck a chord with me,” said Dick Brothers of Sacramento, a retired state government IT manager, who inherited about 20 turn-of-the-century gold and copper mining company stock certificates from his grandfather.
“They’re part of our family’s history,” said Brothers, whose grandfather, Arthur Buel, was editorial cartoonist for the Sacramento and Fresno Bee papers from 1922 until 1942.