Selling Stock Certificates via Transfer Agents

If you are in possession of old stock certificates, there exist few options for trading them off. One of the choices would be cashing them in through the transfer agent of the company with whom the stock is maintained. The Crypto code gives further explanation on how to do this.

  1. Knowing what a transfer agent is

Public companies hire transfer agents to take care of the individuals and organizations who own the shares in their company. Normally, the transfer agent is quite likely a bank or trust company. At times large companies, like Walt Disney, acts as a transfer agent for themselves. Basically, transfer agents execute three main functions:

  • Issuance and cancellation of stock certificates
  • As intermediaries for the company to disburse interest and stock dividends
  • Handling of lost or destroyed stock certificates.

 

  1. Identifying the transfer agent

Attempting to identify who the agent is for the company with which you hold the stock is the next option. Checking into the company’s website will give the details of the transfer agent by visiting the investor relations page. The securities transfer page also gives information about the agents available.

The transfer agents generally trade as private organizations. They offer information generally concerning the role of transfer agents.

  1. Transferring stock to direct registration

Contact the transfer agent and inquire about the instructions on how to transfer the stocks to direct registration. The Direct Registration System (DRS) permits holders of stock certificates to maintain shares with the transfer agent in book entry-form instead of keeping it as a physical stock certificate. For Book-entry the transfer agent holds a documentation of the ownership of your stock in his books. It substitutes the physical stock certificate. Once done, you can easily trade stock at any period of time.

DRS provides security from fraud and various risks linked with paper certificates. It’s economical since printing, storing, and insuring paper certificates are not required.

The stock certificates have to be mailed to the transfer agent. The tracking information can be sent to them as insured mail.

  1. Sell your stock shares

It will take approximately 10 days to transfer your paper stock to DRS by the transfer agent. Once complete, you can trade your shares at any given time. When you want to sell, ask transfer agent to sell it.

DRS permits one to quickly sell the stock without the delays of managing the physical stock certificate, granting you the benefits of positive modifications in the market.