New York Savold Tire Co., Inc. - 1919 dated Stock Certificate
Inv# AS1415A
Stock
Stock with two $2 revenue stamps on back.
New York Savold Tire was an affiliate company of the parent Savold Tire Corporation, established in 1919 to exploit a patented process for retreading automobile tires. During the post-World War I automotive boom, the company became a centerpiece of speculative trading on the New York Curb Market. Its stock debuted at $50 per share and quickly rose to $60, allowing early investors like Benjamin Graham to book substantial profits. However, the venture was soon exposed as a fraudulent "pump and dump" scheme involving inflated claims about its technology and stock manipulation. By October 1919, the corporation's contracts were terminated, the stock became worthless, and the company collapsed, eventually serving as a classic cautionary tale of market fraud in Graham’s seminal book, The Intelligent Investor.
A stock certificate is issued by businesses, usually companies. A stock is part of the permanent finance of a business. Normally, they are never repaid, and the investor can recover his/her money only by selling to another investor. Most stocks, or also called shares, earn dividends, at the business's discretion, depending on how well it has traded. A stockholder or shareholder is a part-owner of the business that issued the stock certificates.
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