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Many shareholders find themselves wondering, “Can I sell shares without a certificate?”

Can I sell shares if I don't have a certificate?

Many shareholders find themselves wondering, “Can I sell shares without a certificate?” No, since the certificate must be endorsed before it can be sold, however you may get your paper certificate renewed.

Certificate Reissue

If you’ve lost your stock certificate, you may get it reissued by following these steps:

Make contact with the firm.

Make contact with the transfer agent.

Purchase an indemnity bond.

You must pay a reissue cost.

Please contact the company.

Paper share certificates are vital to have since they indicate that your name is on the company’s share register. You will be able to vote as a shareholder if you are on it, and you will also get mail and dividends straight from the corporation. Having such advantages is advantageous if you want to have a say in the company’s destiny.

If you’ve misplaced or never got your certificate, contact the investor relations department of the firm that issued your shares and ask for the transfer agent that deals with stock certificates; this information may be accessible online under the company’s investor relations website. Transfer agents are simple firms that keep track of the information of shareholders. Large corporations may act as their own transfer agents on occasion, although most transfer agents are banks or trust organisations. They’ll keep track of the amount of shares issued to each shareholder, the stock certificate numbers, and shareholders’ contact information.

Please contact the Transfer Agency.

When you notify the transfer agency that your certificates must be updated, they will take the following actions:

Make an affidavit request. The transfer agency will want you to provide an affidavit detailing the missing certificates and how you lost them. There are various possibilities for certificate loss, including fraud, theft, or misplacement during a transfer, so be thorough in your explanation.

Make a transfer stop. This operates in the same way as a check stop payment does. As long as a stop transfer is in effect, no one else will be able to cash the certificates.

Make a report to the Securities and Exchange Commission. The agency will also notify the Securities and Exchange Commission, or SEC, that your certificates have gone missing and are being reprinted.

Purchase an Indemnity Bond

Following that, you may need to purchase an indemnity bond. The indemnity bond will protect the corporation and transfer agency if the certificates are redeemed later. The rates are normally between 1 and 5% of the value of the stock certificates.

You must pay a reissue cost.

You will be charged a price since you have requested a paper certificate. This price varies based on the transfer agency, however it might range between $50 and $500. After your information and payments have been validated, new shares will be issued.

What is the Best Way to Sell a Certificate?

It is not required to use a broker to sell your stocks; but, if you want to use one with whom you do not have an account, expect to pay a significant charge. Brokerage businesses no longer provide free or low-cost services to non-clients who just wish to sell shares.

As a stockholder, you have the ability to transfer your shares to someone else, known as the assignee. You must sign the reverse of the certificate, date the transfer, and identify the assignee in order to transfer your shares. The certificate does not include the period of sale or the price of the certificate. The certificate may then be reprinted in the new assignee’s name, or it can be sent to their brokerage for record keeping.

If you elect to mail the paper certificate to the assignee, you must ensure that it is safeguarded throughout transportation. Use certified mail and get insurance from the USPS. Obtaining delivery confirmation can help give piece of mind, as will duplicating the front and back of the certificate to swiftly show ownership if it is lost. If the certificate is misplaced, contact the transfer agent to request a halt transfer.

Brokers on the internet

Paper stock certificates are not required by online brokers. If you have paper certificates, you may deposit them with your preferred online broker to convert them to electronic files with electronic record keeping, eliminating the need for you to retain paper certificates.