Redeem Stock Certificate

A legend is a statement on a stock certificate noting restrictions on the transfer of the stock often due to sec requirements for unregistered securities.

Redeem stock certificate. It may become desirable to redeem stock certificates as a means. You will need to sign the back of the stock certificate in order to redeem it and then mail it to your broker. Other research resources may be found on the internet at public libraries stock exchanges or stockbrokers offices. The broker will notify you when he receives the stock certificates.

Mail the certificate to a stockbroker via certified mail with the appropriate insurance. If you are using a local broker you can simply take the certificate to the brokerage office. The redemption of stock certificates is a process that is built around selling shares and receiving cash for the transaction rather than having the payment credited to your brokerage account and using the proceeds for the purchase of other stocks. Stock certificates used to serve as the physical proof that you owned shares of a company and were considered a sign of prestige if not wealth.

You could also keep the certificates if theyre too old. The direct registration system drs allows owners of stock certificates to hold their shares in book entry form with the transfer agent instead of as a physical stock certificate. Validate a stock certificate by contacting the transfer agent after finding the cusip number. After registration in your name you can place an order to sell your stock.

Book entry means that the transfer agent keeps a record of your ownership of the stock in its books. This was so much the case that many certificates were made with fancy designs and ornate engravings often resembling artwork. Certificate holders who have a brokerage account may want to ask their broker if they can assist in researching the certificate. Stock certificates if applicable tips in some cases you may need to sell stock immediately if for example the stock is very volatile and could lead to a severe loss to the estate if it isnt.

Stock certificates arent typically issued today but historically they represented ownership of shares in a company. Place a sell order for the certificates with the broker then wait for the broker to credit your account after he sells the stocks. Even old ones can sometimes still be cashed in through the company or a stockbroker.