United Founders Corp Stock Certificate

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United Founders Corp Stock Certificate - Great Crash of '29

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Vintage Stock Certificate

Product Code: SC1798

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Prior to the Great Crash of 1929 the use of investment trusts and companies surged. The trusts allowed investors to invest in old companies through the issuance of stock in new ones. This basically allowed the newly issued stock to trade at multiple volumes and values of the actual original company. Because the access and availability of company shares were limited in the '20s the value of these trusts traded at levels that were multiples of their underlying shares and book value.

The disclosure of their underlying shares and book value was often hidden. Confidence was high in these investment managers and they did not want disclose their "strategic" decisions. By 1929, new investment trust were coming to market daily.

When the market crashed, this leveraged exposure by investment trusts whose book value was pennies to the dollar of their stock price helped to create the chain reaction of the stock market drop. United Founders Corporation was among the largest of these trusts with assets of almost $700 million whose stock value once reached $75 and dropped to about 75 cents.

This United Founders Corporation Stock Certificate was issued in the 1920s - 1930s.