How to Endorse Stock Certificates

It's wise to double check your endorsement before mailing your certificates.

If you hold stock certificates, you need to protect those securities as you would cash, jewelry or other valuables. Keeping those stock certificates in a safety deposit box or home safe is one way to protect them. Another option is to open a brokerage account and endorse those stock certificates over to the brokerage firm. After you make the transfer the stocks are held by the broker on your behalf, and you no longer need to worry about their physical security.

Instructions

1. Check the name on the front of the stock certificates for accuracy. When you endorse the certificates you will need to sign your name exactly as it appears on the front, such as "John H. Smith" rather than of "John Smith."

2. Complete the section on the back of each certificate that relates to the attorney by entering the name of the brokerage firm to which the stock is being transferred. This makes the stock certificate negotiable only by the brokerage firm, meaning that you can safely mail it.

3. Sign and date the back of each stock certificate. Double check that your name is signed exactly as it appears on the front of the certificate.

4. Mail the completed stock certificates to your brokerage firm. Use a trackable shipping service like FedEx or UPS so you will know when your documents arrive.

References

• TD Ameritrade: Trading Accounts FAQs