Should I hold stock certificates?

While some investors prefer having physical stock certificates, they are no longer needed to provide proof of stock ownership. While stock certificates are mostly symbolic, they can be valuable to investors that want physical proof that they own stock.

How are stock certificates held?

Evidence of ownership is reported on a computer printout sent to the client. There is no question about who owns the stock. The purchaser is the sole owner, and the broker simply maintains the stock in his possession, often using it as collateral for a loan.

Can I hold my own share certificates?

First, through a certificated share dealing service where you trade shares yourself and hold the certificates. Alternatively, you can use a nominee service where the investments are held by a company on your behalf which means your shares are held electronically.

What do I do with a stock certificate?

Take the certificate to a notary public, and sign it in the notary’s presence. Send the stock certificate to the transfer agent by certified mail along with any required documentation of your ownership rights.

Which is the best way to sell a stock certificate?

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. Book-entry means that the transfer agent keeps a record of your ownership of the stock in its books. This replaces the physical stock certificate.

Can you prove ownership of a stock without a certificate?

In the digital age, you can prove stock ownership without holding a physical certificate. However, if an investor wants a stock certificate, he can request that his brokerage house issue a certificate, or they can contact the company that issued the stocks.

What was a stock certificate before the Internet?

If you owned stock before the internet and online brokerages took over the financial world, there’s a very good chance that you had a stock certificate. This certificate was a physical piece of paper issued by companies to shareholders —the only way you could prove ownership of the stock held in your name.

How can I transfer my stock certificate to direct registration?

Call the transfer agent and ask for instructions on how to transfer the stock to direct registration. 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.