How to Cash Unclaimed Stock Certificates
Stock certificates are becoming increasingly rare as it's cheaper and more efficient to electronically deliver stock. Still, that doesn't mean those old stock certificates sitting in your desk drawer are worthless. They're nearly as good as currency, and by opening a brokerage account or finding a collector, you'll be able to sell your shares at or near market value.
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Instructions
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Open a trading account at an online or brick-and-mortar brokerage. If you're concerned about trading fees, shop around to find a low-cost brokerage that charges minimal fees for each trade. Carefully fill out the required forms, and consider the tax implications before you select a specific type of account. You might consider opening a "stock liquidation service account," which is designed for a one-time stock sale transaction.
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Deposit your stock certificates. Typically, you'll be required to sign the back of the certificate before you deposit it. Drop it off at your brokerage or ship it via certified mail. Check with your broker if you're unsure where you should ship your shares. After you've deposited your stock certificates, it may take several days for the shares to be reflected in your account, at which point they will be available for trade. Your number of shares and the stock's current market price will be reflected in your account.
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Sell your stock. Call your broker or visit their web site to place a sell limit order if you want to specify the sale price for each share of your stock. You can also place a market sell order to accept the first available bid or buy order. Once your stock sells, it may take up to three days for the cash balance to be reflected in your account, at which point you can withdraw the newly deposited funds from your account.
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Tips & Warnings
If you'd prefer to avoid setting up a brokerage account, you may be able to sell your stock certificates to a private collector. Place an ad in the classifieds or on eBay detailing your number of shares and the company you own stock in.
Some companies will buy back their paper shares at going market rates although they're under no obligation to do so. This may save you from paying fees associated with a brokerage account.
Always send your stock certificates via certified and possibly insured mail. You won't be able to claim your cash if you lose your stock certificates.
References
- Photo Credit stock image by Michael Shake from Fotolia.com
