How to Buy Stock Certificates

Old Fashioned Stock Certificate

The SEC mandates that the purchaser of stock has the option of owning the physical stock certificate if they choose.

If you are planning on purchasing a large number of shares this way be sure you aware of the pitfalls.

There are times when people will want deliver of the actual stock certificates when using the investment as collateral for a loan or when they want to ensure that they can be reached directly by the company that they are investing in.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Ownership of stock either directly or through a brokerage account

1. Decide upon the stock certificate you want to own. Is this a novelty or gift? Decide which company's stock fits your needs. Maybe a Disney stock certificate for the grandkids? Purchasing and framing a stock certificate makes an excellent gift. It can become a good starting point for a young investor or maybe it is a way to express a sentimental attachment with a particular brand.

2. Contact your broker or the company that you wish to purchase stock from. Obtain current quote information through yahoo finance or the like and make a market or limit order for the stock you want to purchase.

3. Once your purchase is made you have the legal right to request physical delivery of the stock certificates.

4. 

   Once the stock certificate is received you can frame it. If you decide to purchase many shares in this fashion you would want to store them in a safe deposit box.

Tips & Warnings

• If buying many securities there seems to be more downside to owning the actual certificates as you have the additional cost of storing and paying fees if any are destroyed or lost.

• It is a good way to purchase a keepsake as a gift.

Resources

• Oneshare
• SEC