Paper Share Certificate Transfer Into Digital Form
There's a strong likelihood that if you had stock before the internet and online brokerages, you had a share certificate to prove it. A actual piece of paper called a share certificate was given to shareholders when a corporation sold shares of its stock. However, because the electronic trail has supplanted the exchange of paper shares certificates, share certificate have become obsolete.
If you
require actual documentation of your investment, though, keep reading to learn
how to obtain a share certificate.
KEY
TAKEAWAYS
- The
physical share certificate has become obsolete due to electronic trading.
- A share
certificate can still be obtained from the issuing business or a broker.
- Brokerage
firms keep track of the quantity of shares you own in an account in your
name.
- Share
certificate that are no longer valid may be valuable as ornamental items.
ShareCertificates Are No Longer Necessary
After a while,
each American corporation ceased issuing share certificate. Although this move
may not seem noteworthy, it has made the headlines on occasion, such as when
Disney withdrew their frame-ready certificates depicting The Walt Disney
Company's (DIS) most famous cartoon characters in 2013.
Most
global exchanges have eliminated or are in the process of eliminating paper
share certificate. Electronic records and electronic communication networks
have made proving stock ownership considerably easier (ECN).
What to Do If You Find a Paper Share Certificate?
It's
possible, though doubtful, that an old share certificate has any worth beyond
wall art.
First,
make sure the issuer is still operating. If it is, search for the state where
the firm was founded on the share certificate, as well as the CUSIP number.
Then call
the secretary of state's office in that state to see if the corporation is
still doing business there.
If this is
the case, you can contact the corporation directly to obtain the contact
information for the transfer agent.
To sell
the shares, you must fill out and have notarized the transfer form on the back
of the share certificate. Send the notarized share certificate to the transfer
agent, who will register you as the owner of the shares.
The shares
can then be sold through the transfer agent or through a stockbroker.
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