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First things first. In order to discover if the certificate is worthy or worthless, you need to find out if the company still exists in some form. Has it changed its name, merged with IBM, been acquired by Microsoft, or did it go down the tubes in the Great Depression?
Step one is to do an online search to find a current and accurate company name and its stock symbol. If you get a hit, you can look up the current price. Keep in mind that your certificate may actually represent many more shares than the face value indicates if the stock has split. Also remember that you'll need an exact name match to be sure you have the correct company.
If you don't get a hit on the company name, then the company may be worthless (oh no!), but it's also possible it has changed its name or merged with another company. Hope reigns supreme. Tracing the original company will now require more legwork. The easiest way to minimize your effort is by depositing your certificates in a brokerage account, as most brokers can easily look them up in order to establish a value for your account. Let them do the legwork!
An alternative would be to contact the "transfer agent" listed on the front of the stock certificate. If the transfer agent is still actively representing the company or its successor, you are home free; if not, it's back to the drawing board.
The next step would be to contact the State Corporation Commission of the state that issued the certificate. Since stock certificates show the state of a company's incorporation, you can contact the relevant State Corporation Commission by calling the state government's information line. The SCC can verify if the company is still in business and, if they are, give you the current transfer agent's name. However, the SCC can't tell you what the stock is worth or even give you a stock symbol. (So it's back to Step One.)
Or you can try looking the company up the old-fashioned way. Most libraries have several reference volumes to locate old stocks. Ask your friendly reference librarian what is available in your local library. (If you go when it isn't busy and you're really nice, the reference librarian may even help you with your first search.) You can assist your cause by sounding really smart. To brush up on your smarts, try visiting the consumer assistance area at the Securities and Exchange Commission website, which offers a listing of publications to look for at the library (under "Stock certificates, old.") Everyone likes to help those who help themselves.
If all else fails, you can hire a company to do the work for you. R.M. Smythe specializes in researching, auctioning, buying, and selling historic "paper," as it's known in the trade, and will find out if your stock has any value for $75 per issue. You could also try SCRS, which charges a flat fee of $35 per company search and has a money-back guarantee if no information is found.
If your research turns up nothing, don't despair. Your certificate may actually have value for collectors. Take a peek to see if your old certificates are worth anything at Scripophily.com ("Scripophily" is the collecting of old stocks and bonds). A Planet Hollywood Certificate with printed signatures of celebrity partners Demi Moore, Bruce Willis, Arnold Schwarzenegger, and Sly Stallone goes for $99.95. Don't spend it all in one place!
A Playboy Enterprises 1973 Certificate with a vignette of a nude playmate goes for $275. (A much better deal for you than all 12 Playboy issues from 1973, which only goes for $19.99 on eBay. I guess lots of folks hung on to those mags.)
Finally, if you need Foolish help and support, let TMF Braden, our motley answer to Sherlock Holmes, assist you in tracking down your stock on our new Bloodhound Gang discussion board.
Have you completely lost it? If you lose a stock certificate through fire, theft, or plain old carelessness, shares registered in the stock holder's name (as opposed to "street name") can be replaced fairly quickly and easily. Just contact the company's stock transfer agent. (You must know how to do that by now!)
Tell the transfer agent the approximate date the certificate was issued. You may be asked to submit an affidavit stating all facts surrounding the loss. Then, the transfer agent will recommend a surety company and ask you to post a surety bond, which is typically 1% or 2% of the value of the certificate. Once the bond is posted, the transfer agent should be able to reissue the missing certificate without further ado.
You've probably figured this out by now, but it's an excellent idea to keep a photocopy of any certificates you own in a place separate from where you keep the originals. Therefore, if you accidentally use your certificate to clean your windshield, you'll be prepared with all the information necessary to replace it.
It's unlikely that your old stock certificate will pave the road to riches. But it might help you buy a new Dustbuster.
Related Link:
Ye Olde Stock Certificates, Part I, Fool Four, 5/30/00