How Do You Register Stock Certificates

How to greenbacks in your paper stock certificates: Some tips

— -- Q: What are the best options for people trying to cash in paper stock certificates now that many brokers are backing away from them?

A: Paper certificates are fast condign a remnant of the past. Fewer brokerages want to bargain with them. The industry is moving on.

With that said, paper remains ane of the top means that investors maintain and prove their ownership of stock. And it's very common for investors to find themselves in possession of paper certificates and seek a way to sell them.

A few years agone, several brokerages were pretty welcoming when information technology came to newspaper certificates. Some would fifty-fifty process certificates and sell them for low fees, hoping that the individual would go along the account open up and remain a customer. But sadly, many investors abused these offers, and just used the brokers as the stock equivalent of a check-cashing service.

For case, TradeKing used to have 1 of the most accommodative policies toward processing paper certificates at very little price. At present the brokerage charges $200 per certificate, according to its list of fees. Additionally, stock certificates cannot be used to fund a new account.

Investors who are in possession of a paper stock certificate, should look to kickoff a long-term relationship with an online brokerage. It's best to open up your business relationship and fund it with savings first, be a customer for awhile and then talk to the brokerage about services that might be able to convert the paper certificate. Most Americans will need a brokerage account and investments if they want any chance at retiring anyway, so having a brokerage account is probably a skillful thought.

Once you open the account, you tin can enquire with the brokerage about handling the paper certificates y'all have. Most of the brokerages now have unstated rules on newspaper document handling. If you lot open an business relationship and you're going to have a long-term relationship, most of the larger firms may process the certificates for a nominal fee. If you call the brokerage before opening the account, and explain your intentions, you can come across what kind of deal they'll be willing to make.

TD Ameritrade says information technology charges $70 for a transfer of ownership of a paper document. Nevertheless, for customers of its TD Ameritrade Noon service, that newspaper fee tin be waived 4 times a year.

Another option is to work through a company'southward transfer agent. Information technology'south their task to help companies process ownership and keep runway of shareholders. The largest transfer agent in the U.Southward. is Computershare, so for virtually companies, that'south the transfer agent you will want to contact. Computershare will provide services to individual investors, including cashing them in, if yous follow the correct steps and are willing to exercise some piece of work yourself.

Near transfer agents volition convert paper certificates into a check, if you're willing to practise some legwork. Outset, you'll need to figure out what the correct transfer agent for the stock is. Typically, yous can get this information from the company's website or by calling the investor relations department. Y'all might besides want to phone call the transfer agent starting time and confirm it is the transfer agent for the stock. Near likely, information technology volition exist Computershare, simply non e'er. Proceed in mind that Computershare recently bought BNY Mellon's transfer agent business, too, and then it will handle those accounts.

Next, you have to get the newspaper document to the transfer agent. Y'all'll need to mail it. Be certain you ship the certificate via insured postal service and have tracking information. Likewise, make sure you enclose a letter requesting the transfer agent to put the certificate into "DRS book entry class." DRS is brusque for Directly Registration Organization. It would exist a very good idea to telephone call the transfer agent before mailing your document to come across if whatsoever boosted paperwork is required.

Once the transfer agent receives the shares and puts them into the volume entry system under your proper noun, y'all can sell the shares. You'll need to contact the transfer amanuensis, via mail or telephone, and ask that the shares are sold. Most transfer agents will do this at no charge and will postal service you lot a check if you request payment that manner.

Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies and Central Analysis for Dummies. He answers a different reader question every weekday in his Inquire Matt column at money.usatoday.com. To submit a question, east-postal service Matt at mkrantz@usatoday.com. Follow Matt on Twitter at: twitter.com/mattkrantz