Table of Contents

How Can I Check If an Old Railroad Bond Has Value?

By

澳洲幸运5官方开奖结果体彩网:The Investopedia Team

Updated November 16, 2024

Reviewed by

Andy Smith

Fact checked by

Vikki Velasquez

Finding out whether an old railroad company bond, perhaps from 1938 or so, has any value can be a tough challenge. Check the terms on the bond and find out if the issuer is still a functioning business. You may still have some options to find value in what you own even if it's not. The same applies to a bond from any company of that vintage.

You'll have to do some homework or spend money on a search service to find out.

Key Takeaways

Consider doing an online search for current information about the company that issued the bond.
Do your research but keep your expectations in check.
Try contacting the Department of Commerce or the corporation commission in the state that's cited on the bond.
The bond may be a collectible and have value even if it can't be redeemed.

Do Appropriate Research

Your first step should be to contact your broker to find out if they can obtain more information about the company that issued the bond. Keep in mind that brokers typically have access to tools that most of us don't including Standard & Poor's corp꧅oration rꦍecords and similar types of resources. The bond should have a serial number and other markings that can help identify it.

Consider doing an online search of your own as well. Try search engines such as Google. Was the company taken over? Did it go bankrupt? The search might provide the new company's name, ꦗaddress, and contac🐲t information.

Important

Y🌌our local library or the state in which the corporation operates might yield addꦓitional information.

Try contacting the Department of Commerce or the corporation commission in the state that's cited on the bond. These organizations should at least be able to point you in the right direction.

Use a Stock Search or Collectibles Service

Search services might be able to help if all else fails. Arizona-based Stock Search International charges $40 for access to their corporate databases and up to $85 per company to initiate new research.

Keep in mind that the bond may be a collectible and have value even if it can't be redeemed. Check out to determine whether the security has some value as a 澳洲幸运5官方开奖结果体彩网:collectible.

What Is a Company Bond?

A company bond is often referred to as a corporate bond. A company might issue bonds to raise needed capital. An investor is effectively making a loan to the company when they purchase a bond. The company will pay the money back on a predetermined date when the bond matures. It will pay interest on the purchased bond until that time.

How Can I Sell a Collectible?

Have it appraised first so you know how much it's reasonably worth. You might then contact an auction house or a consignment shop for assistance. They might sell it for you although they'll typically charge a fee or commission. You could also simply advertise your collectible online and handle the sale yourself.

Do Bonds Expire If the Company Is Still in Business?

Bonds have a maturity date by which the issuing company must effectively buy them back. They should still be redeemable after this date if the company has remained in business and sometimes even if it hasn't. Bondholders would have a legal claim against the company's assets if it went bankrupt or otherwise closed its doors but its assets might well be depleted depending on how much time has passed.

The Bottom Line

🦄 Significant age can add value to some assets. Your first challenge should be determining if y✅our old bond is one of them.

This involves tracking down information regarding the issu♏ing company to find out if it’s still in business. You might want to enlist legal or financial help if it is so you can redeem the bond. Otherwise, you may want to attempt to sell the bond as a collectible.

All these options can cost you some money, however, and this involves risk because you might discover that your bond is worth little more than the paper it's printed on.

Article Sources

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U.S. Securities and Exchange Commission. "."
Stock Search International. "."
Investor.gov. "."
Consumer Reports. "."

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