Some people inherit mom’s dusty old china, or dad’s vintage stamp collection. People leave all sorts of odd things behind when they die, some of which have sentimental value but not much financial worth.
But what if you come across a framed stock certificate? Does that fall into the category of collectible, or could it actually be worth money? The answer is going to depend on a couple of different factors — but it’s absolutely worth looking into.
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Let’s consider the case of Joe, whose dad worked at Microsoft.
Joe’s dad passed away last year, and Joe is the executor of his estate. When going through his dad’s possessions, Joe found a stock certificate good for one share of Microsoft stock. It was framed, likely as a workplace memento, and dated March 10, 1990.
Since Microsoft (NASDAQ:MSFT) has become a whole lot more valuable since 1990, and the stock has split multiple times since then, Joe’s dad’s single share would have turned into 144 current shares with a value of around $60,000 today (not including dividend reinvestment) — if it is still valid. Keep in mind that additional shares after a split would likely have been distributed separately, which Joe should also look into (1).
So, the big question is, can Joe turn this into real money, or is it nothing more than a nice memory?
Can old stock certificates still be worth money?
Today, stock trading is almost entirely done electronically — but that wasn’t always the case.
Up until around 1970, paper certificates were the standard way to represent stock ownership. In fact, the University of Massachusetts Amherst, which exhibits some old certificates in its library, says the certificates used to be fairly elaborate to signify the company’s importance and to make sure they couldn’t be counterfeited.
Many of those old certificates have been converted by now, but in 2021, the Depository Trust & Clearing Corporation (2) (which is a centralized hub for clearing, settlement and tracking of securities) indicated it had $780 billion worth of paper certificates remaining in its vaults that it wanted to digitize.
Joe’s father’s Microsoft stock certificate may be among the old certificates that still have significant value. In fact, Investor.gov (3) explained that “an old stock or bond certificate may still be valuable even if it no longer trades under the name printed on the certificate.”
Unless the stock share was already traded in — which would usually be indicated by a stamp labeling it cancelled (4) — chances are good it still represents a valid ownership claim in either the original company or any successor businesses.
On the other hand, in the case of Joe’s dad, it’s possible his framed certificate had turned into nothing but a collectors item for him — which could still end up having some value in the collectibles (5) market.
How can you figure out if your old certificate is valid?
So, what should Joe do about his dad’s certificate?
Investor.gov recommends contacting the transfer agent if it is printed on the certificate.
If the transfer agent doesn’t exist anymore, you can contact the current company to find out who its new transfer agent is. If you don’t know the company’s name, Investor.gov suggests contacting the state agency that handles incorporation in the location where the company was incorporated to help you find out.
Since Microsoft still very much exists, Joe has an easy job. Microsoft provides the contact details of its transfer agent on its Investor FAQ page (6), so Joe can just call Computershare to see if the certificate is still valid and to cash it in.
If you have a brokerage account, your broker may also be able to help with this process.
Since Joe’s stock could be worth around $60K if it’s valid, he may also want to talk with a tax professional about when and how to sell it to minimize the tax consequences of the capital gains, as special rules can apply (7) regarding how the cost basis is determined after a death.
Joe’s dad’s nostalgia may have been a big boon to his son, who could potentially take his wonderful work memory and turn it into an investment that could help out the next generation.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
FSBWA Investor Relations (1); Depository Trust & Clearing Corporation (2); Investor.gov (3); U.S. Securities and Exchange Commission (4); Bull Market Gifts (5); Microsoft (6); Fidelity (7)
This article originally appeared on Moneywise.com under the title: I found a framed stock certificate in my late father’s things. How do I find out if it’s worth anything?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.