As High as a Jet Plane Flies: Some Facts About Securities

There are many people investing in stocks and bonds, but few of them have ever seen an actual negotiable security. The Korea Stock Exchange and the Korea Securities Depository have reported some eye-opening facts about securities.

According to the stock exchange, 43 stocks closed last Thursday at a price below the cost of producing the share certificate - 1,080 won (83 cents). Most of these stocks are under supervision due to defaults or other reasons. But five of the stocks, including Kwangju Bank and Kyongnam Bank, are normal issues.

While it costs 70 to 80 won to print paper money, it costs far more to produce a share certificate. The state-run Korea Minting & Security Printing Corp. supplies special paper for negotiable securities for 130 won per sheet. Printing costs 750 won. And a share certificate should have a 200-won stamp attached to be valid.

The Korea Securities Depository said 107.57 million negotiable securities were in its custody at the end of May, with a total value of 5.42 trillion won. If the securities were stacked one on top of the other, they would tower 12.91 kilometers, the cruising altitude of a long-distance airliner.

The securities depository also said 163,418 individual securities had been stolen or lost as of the end of May, valued at 1.02 trillion won.

"If you lose a share certificate, while keeping it privately, you will have to go through complex procedures to restore your right to the shares," an official at the Korea Securities Depository said. "So it is the best to keep your stock certificates in the securities depository."

by Rah Hyun-cheol