How to Sell Old Stock Certificates

Old stock certificates could be valuable or worthless.

You may have come into some old stock certificates when rummaging through family papers or by inheritance. They may not be worth anything. On the other hand, if the company is still in business in some form, those old pieces of paper may turn out to be very valuable. Before you can sell old stock certificates you'll need to find out if the company still exists and then arrange to have ownership transferred to you. Getting the facts you need may take some time and research, but just might pay off handsomely.

Things You'll Need

• Stock certificate information
• Brokerage account

Instructions

1. Find the key information on the stock certificates. You need the company name and the state where it was incorporated. You also need the COSIP number, which is a unique identifier for the stock of that company. Finally, make a note of the name of the stockholder of record (the original owner). All of this information should be on the face of the certificates.

2. Search for the company at your local library or online. Some financial websites (Yahoo! Finance, for example) have free stock lookup tools you can use. If the company still does business under the name listed on the stock certificates, you may be able to verify it using this method.

3. Contact your broker and provide the COSIP number if you don't find the company name listed anywhere. A brokerage (including discount brokerages) can identify the company from the COSIP number even if the firm has changed its name.

4. Get in touch with the agency responsible for regulating corporations in the state where the firm was incorporated. Usually this will be the Secretary of State. You may request a records search to identify the corporation and determine its current status and name.

5. Contact the company's transfer agent once you have identified the firm. A transfer agent is responsible for handling the sale and processing of company stock. Ask for complete instructions to transfer ownership of the stock certificates into your name. For instance, if the stock is inherited, you may need a copy of the probated will. Transfer agents may have varying policies, so take care of this before you attempt to transfer ownership.

6. Complete the transfer of ownership section on the back of the stock certificates once you're sure you've satisfied any other requirements set by the transfer agent. Take the certificates to a notary public and sign them in the presence of the notary so he can notarize your signature.

7. Send the stock certificates to your broker or the transfer agent via insured and certified mail. With really old stock certificates you'll probably have to send them directly to the transfer agent. However, if you can deposit them with a discount broker you may pay lower sales commissions.

8. Wait until the shares are credited to your account with the transfer agent or to your brokerage account. Then all you have to do is call or go online and place a sale order.

Tips & Warnings

• If the company is no longer a separate business entity with publicly traded stock, you may still have a claim. However, the shares are not marketable. Under these circumstances you should contact a lawyer to see if you do have a legal claim.

• Don't worry about stock splits that may have occurred. If the stock has split, the added shares will be credited to the stockholder of record by the transfer agent, even if you don't have the physical certificates in your possession.

References

• "USA Today": Selling a Paper Stock Certificate Takes Some Work
• Investopedia: Old Stock Certificates
• Investopedia: Stock Certificates and Stock Splits