or records that were returned by the stores to the distributor/manufacturers as dead inventory that didn't move- a/k/a "cut outs." (Labels don't take returns from stores like they used to, except possibly for defects- but stuff that didn't sell? They're stuck with it these days).
Occasionally, on counterfeit copies of rare records, you'll see the punch hole reproduced in the artwork of the clone copy. The originals were overlooked in the marketplace when released but became collectible later.
There's a pretty good story associated with MCA and a massive amount of returned inventory that was brokered for resale through Morris Levy.(It amounted to over 60 tractor trailer loads if memory serves). The skim, the scam, the sting and the threats over a wire were what finally led to Levy's conviction in a court of law. And that's really the least interesting part of Levy's life story. Worth reading about if this stuff interests you.
