What is wallpaper?

Wallpaper is the term used to describe bonds, stocks, and other assets that have lost all of their value. When printed physical certificates rather than digital identifiers on a brokerage’s computer represented bonds and stocks, this slang term first appeared.

But the term remained, and it now refers to situations in which a stock or bond certificate (or another exercisable right to securities, such as stock options) loses value for several reasons, the most frequent of which is bankruptcy.

Recognizing Wallpaper

The word “wallpaper” suggests that because the certificates have no value, you may as well use them to wallpaper your home. The 1929 stock market crash, which occurred during the Great Depression, was a natural process that followed this. At the time, tangible paper certificates served as a representation of a company’s actual share ownership.

Thirty billion dollars were destroyed in a flash as the stock market fell on Black Thursday, October 25, 1929. At the time, the sum was double the amount of the US national debt. Approximately 20,000 businesses filed for bankruptcy, leaving many investors with worthless paper.

Those fortunate enough to stay out of homelessness covered their walls with paper, an old-fashioned method of blocking drafts before insulation became widely accessible or used. The stock certificates are now worthless. It’s possible that some people mockingly nailed the useless diplomas as art on their walls.

These days, wallpaper refers to any security entirely worthless, regardless of whether it is still helpful.

Save your old stock certificates; you never know when they could be helpful.

Examples of Contemporary Wallpaper

Several businesses that failed during the Great Recession of the late 2000s and early 2010s, as well as the dot-com bubble crash from March 2000 to October 2002, are some instances of wallpaper from today’s world.

A few examples are Lehman Brothers during the Great Recession and online stores Pets.com and Webvan after the dot-com bubble crash.

Antique Wall Decals

Vintage stock certificates have been given a second chance at life as collectibles. It is not uncommon for collectors to shell out thousands of dollars for certifications regarded as fine art, including well-known imagery, signatures, or pictures of famous people or were issued by well-known governments or organizations.

A $1,000 Confederate States of America bond and an 1887 stock certificate from Chadborn & Coldwell Manufacturing Co. (later Toro Co.) with a vignette of a youngster mowing a lawn are two common instances of scarce items. Each is estimated to be worth $2,500.

Scripophily is gathering obsolete or worthless “wallpaper” stock and bond certificates.

Particular Points to Remember

But old stock certificates with the names of long-gone corporations shouldn’t be thrown away as useless.

A stock does not become worthless after decades of mergers, acquisitions, name changes, and stock splits. Depending on the circumstances, it might indicate that a stock is worth significantly more than one could anticipate. You could locate a collector who will pay a decent price if it has a different value than an actual stock. According to an ancient proverb, “One person’s junk may be another person’s treasure.”

Investopedia does not provide financial advice or services related to taxes or investments. Investors in assets are not taken into account while presenting the facts. Investing has risk, which includes the potential for principal loss.

Conclusion

• Wallpaper is a colloquial term for stocks, bonds, and other assets that have lost market value.
• In the days before printing tangible certificates for stocks and bonds, the word “wallpaper” was used.
• In periods of economic depression, such as the Great Depression, worthless stock certificates were used as wallpaper or insulation.