3 Ways to Sell Stock Certificates
In the world of buying and selling stocks, physical stock certificates are becoming increasingly rare. Most modern investors hold stocks in electronic format, known as “book-entry” or “street name.” However, there may still be occasions when you end up with physical stock certificates – either as an inheritance, a gift or otherwise. In such cases, it’s important to know how to sell these certificates and convert them into money. Here, we’ll explore three ways to sell stock certificates.
1. Deposit the Stock Certificate to a Brokerage Account
One of the most common ways to sell stock certificates is by depositing them into a brokerage account. Many traditional brokerage firms offer this service, including both full-service and discount brokers. To do this, follow these steps:
– Open an account with a suitable brokerage firm if you haven’t already.
– Endorse the back of the certificate by signing it and writing your account number on it.
– Send the endorsed certificate using registered mail or another secure mailing method to ensure it arrives safely at the brokerage firm.
– Once the brokerage receives and processes the certificate, it will deposit your shares into your account.
– You can then place an order through your broker to sell the shares. Keep in mind that you may have to pay transaction fees associated with selling the shares.
2. Sell Stock Certificates Directly Through the Company’s Transfer Agent
Some companies have established transfer agents who handle transactions involving their stock certificates. Transfer agents are third-party companies that act as intermediaries between stockholders and issuers. They keep records of stock transactions, issue replacement certificates, and perform other administrative functions related to maintaining shareholder records.
To use this approach:
– First, contact the company’s investor relations department or check its website for information on its transfer agent.
– Then, follow their instructions for selling your certificate – this could involve sending in your endorsed certificate along with a letter of instruction or completing a specific form.
– The transfer agent will process the transaction, send you the proceeds and cancel your old stock certificate.
3. Sell Your Stock Certificates Through an Auction
Another option to sell stock certificates is through an auction house that specializes in collectibles or financial memorabilia. This is particularly useful if your stock certificate has a historical or artistic value.
To sell your paper stocks this way:
– Research trustworthy auction houses or websites specializing in collectible stocks and bonds.
– Contact them to determine if your certificate has sufficient value to warrant an auction listing.
– If so, consign your certificate to the auction house and agree on the terms, conditions, and commissions for the sale.
– The auction house will help market and sell the certificate, with some taking care of all legal work associated with transferring ownership.
In conclusion, while selling physical stock certificates might seem daunting at first, these three methods highlight various ways to monetize your holdings. Whether you choose to deposit the certificate into a brokerage account, sell it directly through a company’s transfer agent, or use an auction house for collectible certificates – taking proper precautions and following established procedures will ensure a smooth transaction.