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No single grading standard has yet evolved for the collecting of
stocks and bonds. In general, certificate grading standards mirror
those used by paper money collectors. Here are the terms I use for
grading paper.
Be warned that dealers' definitions can and will differ. Many dealers
will grade stocks and bonds one level higher than me.
Using my definitions, the grades of most stocks and bonds will
cluster around the Fine and Very Fine categories. Unless a seller
specifically argues to the contrary, you can generally assume certificates
are in average condition. Fortunately, certificates in average
condition are perfectly acceptable for most collectors.
Also be warned of the phrase, "average condition for the issue."
The average condition of some issues, particularly early Cuban certificates,
can be downright awful. Because of storage conditions, average certificates
of some issues will include discoloration and water staining. The
average condition of some issue may actually mean heavy cancellation.
If ever in doubt about condition, ask your seller to explain and
send you a copy.
| Mint = ??? |
I do not use this term. With deference to experts
in other hobbies, I argue that paper is not minted. |
| UNC = uncirculated |
I seldom use this term for stocks and bonds.
Virtually all stocks and bonds, upon close examination, show
handling marks. Truly uncirculated documents are still in printing
plants. |
| XF = extra fine |
Documents are much better than average.
There are no tears or water stains. This is generally the highest
grade I use for any stock certificate. Paper is bright with
original body. Proofs in this category may show a few pencils
or crayon marks, but the paper will be better than average. |
| VF = very fine |
Documents are better than average, but
not perfect. There may two or three light folds. This
is generally the highest grade I use for bonds, because most
bonds were folded in quarters. There may be minimal cancellations
that affects signatures, but not the paper. Paper is generally
bright, but may show minimal aging. Older certificates may show
halos around ink signatures, but the paper will be intact. |
| F = fine |
Average documents with average problems.
Documents are intact, but may have average creases, handling
marks, tiny edge tears. Cancellations will be typical for the
issue and may include punches, punch-out cancels, cut cancels,
and cut-out cancels. There may be one or two staple holes. The
document may be fastened to a stub with staple, glue, or paste.
Average certificates may also have been removed from stubs,
and may show staining from the old glue. The paper, however,
should show only minor wrinkling from removal. DO NOT BUY
anything in this condition if you are unwilling to accept average
problems. |
| VG = very good |
Documents have more problems than normal.
They show definite wear. Originally-folded documents may show
minor separations along original folds. There may be water stains.
Pulp paper may show yellowing or brittleness. Cancellations
will be heavier than average for the issue. |
| G = good |
Documents are intact, but beat up.
There may be significant acidic paper deterioration in paper
with high pulp content. Do not collect documents in this condition
except as space fillers. |
| FR = fair |
Documents are heavily worn. There
may be large tears or bad acidic paper deterioration. There
may be pieces missing. Collect items in this condition only
if they have significant historical or collectible interest. |
| PR = poor |
Documents have serious problems.
They are barely above rag status. Buy with extreme caution.
Items in this condition are space fillers only. They are likely
to have minimal resale value. |
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