How to Obtain Stock Certificates in a Brokerage Account

Most publicly traded companies issue share certificates if requested by investors in writing.

Although most brokerage firms discourage the practice, many investors still request issuance of physical certificates after purchasing stock. Some like the feeling of control, others like the artistic value of the ornate pieces of paper. Others want the shares for sentimental or nostalgic reasons. Walt Disney Company shares, for example, are adorned with many classic animated characters surrounding an image of Walt Disney. There is a small cottage industry of companies that sell single framed certificates of Disney shares that are commonly purchased as gifts. Disney, like other companies, will only issue certificates for larger share amounts. Regardless of the reason, the procedure to request certificates is the same.

Things You'll Need

• Either a brokerage account, brokerage relationship or Direct Registration Service account with the issuer
• Proof of ownership of the shares
• Letter of Instruction, Medallion Signature Guaranteed
• ID

Instructions

1. 

   How you hold the shares determine where you send the request for the certificates

   Determine to whom the request needs to be made. If your shares are in a brokerage account, they are typically held in what is called "Street Name." This means your brokerage firm is actually the registered owner, for your benefit. In that case, the request must be made to the firm's shareholder registration department. If your shares are held with the company through a Direct Registration Service, you can either have them electronically transferred to a brokerage account, or you can make the request to the company Transfer Agent.

2. 

   Signatures on requests for certificates often must be guaranteed by participants in the Medallion Signature guarantee program

   Make your request in writing to have the shares issued and mailed to your address of record. Most companies and brokerage firms require what is called a Medallion Signature Guarantee. These can be obtained from participating financial institutions such as banks, credit unions, brokerage firms that are members of either the New York Stock Exchange or one of the regional stock exchanges. You will need a photo ID that contains your signature for verification.

3. 

   Once you have made the request, be patient. It can take up to six weeks to complete.

   Send your request to either your broker or the company Transfer Agent, whose job is to issue shares and keep track of registered owners of stock for companies. Some companies, such as Walt Disnery Company, perform their own transfer agent duties. The United States has 134 registered transfer agents. The easiest way to find out where to send your request is to call the shareholder relations department of the company in which you hold shares and ask. It will eliminate all the guesswork. And then wait patiently - it can take up to six weeks to receive you shares by mail.

Tips & Warnings

• If you have a brokerage account, let them do all the work. That is why you pay them.

• If you have a Direct Registration Service account and a broker, transfer the shares electronically to your broker and then let them do all the work.

• Many firms will allow you to pay for overnight delivery. This won't get them to you much faster, but will at least allow you to track you share certifcates while they are enroute.

• Keeping share certificates exposes them to loss by theft, fire, flood or some other calamity. It is better to have them in street name or direct registration for those reasons.

• Some brokerage firms discourage certificate issuance requests by charging a fee. If yours does, request your shares be electronically transferred to direct registration or close the account and transfer to another firm that doesn't charge a fee.

References

• SEC: Medallion Signature Guarantee Program
• Walt Disney Company shareholder relations