Thursday, July 30, 2009

Revenue Stamps

As a means of raising funds for federal coffers, the United States government enacted legislation during the 19th and 20th centuries taxing transactions involving stock certificates and other financial transactions. In some cases, these stamps also have to be affixed to manufactured goods. The federal government imposed stamp taxes on the issue and transfer of stocks and bonds.

States may also have their own revenue stamps. These stamps often were printed in bright colors such as red or orange to stand out and easily be seen on certificates to show that the tax had been paid. These colorful stamps usually provide what little color appears on an otherwise plain certificate. Revenue stamps, while certainly not of major importance, are a plus if they are affixed to a certificate as they contribute to the general appeal of that certificate.

The above paragraphs reference the most important parts of a stock certificate. There are other factors to consider as an individual begins to collect stocks or bonds. The best way to familiarize oneself with the parts of a stock is to actually handle and closely inspect as many different types of certificates as possible. There is no real substitute for this type of “hands-on” experience.

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