The Complete Guide on How to Sell a Share Certificate

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Selling a share certificate can seem daunting, but it's a relatively straightforward process. You can sell a share certificate through a brokerage firm or a bank.

To start, you'll need to gather your share certificate and any supporting documents, such as the certificate's original issue price and any dividend payments made. This information is usually found on the certificate itself.

First, you'll need to determine the value of your share certificate. This can be done by checking the current market value of the company's stock or by getting a professional appraisal.

Preparation

To sell a share certificate, you'll need to prepare it for sale by sending it via a trackable and insured shipping method to prevent damage during transit.

Locate your stock certificate and assess its current market value, ensuring you have all the necessary documents ready as the seller. This includes checking physical storage locations such as safe deposit boxes or home safes, and reviewing digital records if the certificate is held electronically.

To ensure a smooth transaction, gather essential seller documents including a signed stock power form, a medallion signature guarantee, and any transfer instructions required by your broker or financial institution.

Create an Account

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Creating a Computershare account is the first step in selling your securities. This will allow you to complete the necessary registration and security transfer forms digitally.

To set up your account, you'll need to provide basic personal information. This will be used to guide you through the registration process.

Once you've successfully set up your account, you'll be able to fill out the security transfer forms electronically. This digital documentation process ensures efficiency and accuracy in transferring securities.

Remember to review all the details entered before submitting the forms to avoid any errors. This will ensure a smooth and successful transfer of your securities.

Prepare Your Certificate

To prepare your stock certificate for sale, it's essential to follow the necessary steps. This may include sending it by postal mail and obtaining the required signature as the seller.

Securely packaging the certificate is crucial to prevent damage during transit. Send it via a trackable and insured shipping method to safeguard its delivery.

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Obtaining the seller's signature on the necessary transfer documents is an essential part of the process. Sellers should carefully review and complete all required paperwork to avoid any delays or complications in the selling process.

To find your stock certificate, check physical storage locations such as safe deposit boxes or home safes. Review digital records if the certificate is held electronically.

Gather essential seller documents including a signed stock power form and a medallion signature guarantee.

Selling Process

Selling stock certificates through Computershare provides a secure and convenient method for transferring ownership of shares managed by a trusted financial institution.

To sell your shares, log in to your Computershare account and go to the selling section. Select the stock certificates you want to sell and enter the necessary details, including quantity and price.

Once the sale request is submitted, Computershare will verify the documents and process the transaction accordingly to ensure a smooth and secure transfer. This verification process involves meticulously reviewing the submitted paperwork to confirm the authenticity of the sale request.

To optimize your sale through Computershare, it’s essential to follow valuable tips for an efficient and secure transaction. Familiarize yourself with the platform’s interface to understand the process of listing your shares for sale.

Step 2

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To start the selling process, you'll need to complete a CREST transfer form for each stock you want to sell. One form is included in the pack, but you can also find additional forms online.

You only need to complete one transfer form even if you have multiple certificates for the same stock. This is a time-saving step that helps keep things organized.

You can find an example of how to complete a transfer form by clicking on the "transfer form" link at the top of the page. This will give you a clear idea of what to expect.

Submit Your Sale Request

To submit your sale request, log in to your Computershare account and go to the selling section. Select the stock certificates you want to sell and enter the necessary details, including quantity and price.

Make sure to provide all necessary details accurately for potential buyers. This will help facilitate a smooth and efficient transaction process.

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Before submitting your sale request, carefully review all the information entered to avoid any errors or discrepancies that could cause delays or misunderstandings with the buyer.

Submit your sale request through Computershare to initiate the transaction process. This will trigger the verification process, which involves cross-checking the details provided in the request to ensure accuracy and prevent potential errors.

The verification process is crucial in maintaining the security and integrity of the transaction. Computershare meticulously reviews the submitted paperwork to confirm the authenticity of the sale request.

By providing accurate and up-to-date information, you can help ensure a smooth and secure transfer of ownership. This is especially important when selling stock certificates through Computershare.

Well-Known Brokers

If you're looking for a reliable broker, you've got a few options to consider. ShareDeal Active stands out as the cheapest broker in this survey, charging a flat fee of £19.50 for certificated trades of any size.

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The Share Centre, on the other hand, charges a percentage fee of 1%, with a minimum fee of £25. This means that even small trades will cost you at least £25.

Hargreaves Lansdown has a more complex fee structure, charging 1% on the first £10,000, 0.5% on the next £10,000, and 0.25% thereafter, plus a flat fee of £20. This results in a minimum fee of £40.

Equiniti Shareview charges a percentage fee of 1.5% on trades up to £50,000, and 0.25% on balances over £50,000, with a minimum fee of £45 online or £60 on the phone.

TD Direct Investing takes a different approach, charging a flat fee of £12.50 plus a £50 minimum fee, making it a total of £62.50 for even the smallest certificated trade.

Here's a quick comparison of the fees charged by these well-known brokers:

Verification and Payment

Verification and Payment is a crucial step in selling a share certificate. Computershare meticulously reviews the submitted paperwork to confirm the authenticity of the sale request.

During this process, Computershare employs advanced verification procedures to thoroughly examine each sale request before finalizing the transfer. This ensures the security and integrity of the transaction.

After successful verification, Computershare proceeds with payment for the stock certificates, deducting any applicable fees before finalizing the transaction with the seller.

Verification and Processing

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Verification and processing are crucial steps in the sale of stock certificates. Computershare meticulously reviews submitted paperwork to confirm the authenticity of the sale request.

This step is crucial in maintaining the security and integrity of the transaction. By employing advanced verification procedures, Computershare ensures that each sale request is thoroughly examined before finalizing the transfer.

After documents are validated, Computershare proceeds with processing the transaction using stringent protocols to safeguard the assets involved. The timeline for processing can vary significantly depending on the complexity of the company's history and the age of the certificate.

In some cases, the process can be resolved in a few weeks, but in others, it may take several months. Sellers should carefully review and complete all required paperwork to avoid any delays or complications in the selling process.

Computershare takes charge of the final step in the ownership transfer process, ensuring all necessary security transfer forms are correctly processed. By maintaining a meticulous record-keeping system, Computershare ensures that all documentation is accurately processed and updated in a timely manner.

Transfer Agent

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The transfer agent plays a crucial role in the ownership transfer process. They are responsible for maintaining records of stock ownership and facilitating the transfer of securities.

You'll need to locate the transfer agent to initiate the transfer process. This can be done by contacting the company directly and asking for their name.

Physical stock certificates are rare today, but it's essential to maintain thorough records of your investments. Keep digital copies of all transaction confirmations, dividend reinvestment statements, and year-end tax documents for at least seven years.

Companies rarely handle their own securities in-house, so it's common for them to use a transfer agent. This agent will have a record of the person's name on the stock certificate and can transfer ownership to your name.

You should be prepared for the transfer agent to be picky about the transfer process. It's best to contact them and request instructions on how to proceed.

If the company is no longer public, your search ends, and you should speak to a lawyer about any potential legal repercussions.

Transfer and Ownership

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Transfer and ownership is a crucial part of selling a share certificate. Computershare facilitates the transfer of ownership from the seller to the buyer after payment is confirmed.

They ensure all necessary security transfer forms are correctly processed through their secure platform. This platform helps validate transaction details and oversees the seamless transfer of ownership rights.

Computershare maintains a meticulous record-keeping system to accurately process and update documentation in a timely manner. This adds an extra layer of security and transparency to the transaction, simplifying the ownership transfer process for both parties.

Crest Transfer Form

You'll need to download a CREST Transfer Form for each stock you're selling, even if you have multiple certificates for the same stock.

To complete the form, you'll need to fill in the Name of undertaking, which is the company name, such as Barclays or Vodafone.

The Description of security section requires you to write the security description, like ORD GBP1 or ORD USD0.10.

Credit: youtube.com, Transfer Form Tutorial Video

You'll also need to write the amount of shares in words, as well as in figures.

Make sure to enter your full name and address exactly as it appears on your certificate in the In the name(s) of section.

All registered holders of the certificate need to sign the form in the Please sign here section.

You can leave the rest of the form blank and we'll complete it for you.

If you're unsure how to complete the transfer form, you can look at the CREST transfer form sample for guidance.

Transfer of Ownership

Transfer of ownership is a crucial step in the process of buying and selling shares. Computershare facilitates this transfer by ensuring all necessary security transfer forms are correctly processed.

Once the payment is confirmed, Computershare takes charge of the final step in the ownership transfer process. This involves validating transaction details and overseeing the transfer of ownership rights through its secure platform.

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Computershare maintains a meticulous record-keeping system to ensure all documentation is accurately processed and updated in a timely manner. This simplifies the ownership transfer process for both parties and adds an extra layer of security and transparency to the transaction.

If you're selling shares, you'll need to complete a CREST Transfer Form for each stock. This form requires you to provide information such as the company name, security description, and amount of shares in words and figures.

Here's a breakdown of the required information on a CREST Transfer Form:

You can leave the rest of the form blank and let Computershare complete it for you. If you're unsure how to complete the transfer form, you can refer to the provided CREST transfer form sample.

What If a Company is Bankrupt?

If a company is bankrupt, it's essential to understand the implications for your share certificate. The company's bankruptcy may lead to a significant drop in the value of your shares.

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The bankruptcy process typically involves the company's assets being liquidated to pay off its debts. This means that any remaining assets will be distributed among the creditors, not shareholders.

Shareholders may still receive some value from their shares, but it's unlikely to be the full amount they initially invested. In some cases, shareholders may be able to claim a small portion of the company's assets, but this is rare.

The bankruptcy process can be complex and time-consuming, often taking several years to complete. During this time, the company's shares may be suspended or delisted from the stock exchange.

In the event of a company's bankruptcy, it's crucial to act quickly and seek professional advice to protect your interests. A good lawyer or financial advisor can help you navigate the process and make informed decisions about your share certificate.

Research and Valuation

Research and Valuation can be a lengthy process, especially if the company has undergone mergers, acquisitions, or name changes, which can take several months.

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Credit: pexels.com, High-angle view of financial charts, showcasing stock market analysis with magnifying glass and highlighters.

The timeline for resolving simple cases where the company still exists under the same name can be as short as a few weeks.

Be prepared for a potentially lengthy research process if you need to engage professional stock search services.

The complexity of the company's history plays a significant role in determining the duration of the research process.

Frequently Asked Questions

How do I cash in a share certificate?

To cash in a share certificate, you'll need to transfer it to a nominee account or investment account with a reputable provider. Start by finding a company that accepts paper shares and setting up the necessary account to initiate the transfer process.

Ruben Quitzon

Lead Assigning Editor

Ruben Quitzon is a seasoned assigning editor with a keen eye for detail and a passion for storytelling. With a background in finance and journalism, Ruben has honed his expertise in covering complex topics with clarity and precision. Throughout his career, Ruben has assigned and edited articles on a wide range of topics, including the banking sectors of Belgium, Luxembourg, and the Netherlands.

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