How to Register, Transfer and Replace Lost Stock Certificates

The internet has changed many facets of investing, including how to request stock certificates.

Investors have been buying, selling, exchanging and sometimes losing stock certificates for centuries. The New York Stock Exchange began in 1792 under a buttonwood tree on Wall Street where 27 local merchants "exchanged" government bonds. The exchange is still there, but the buttonwood tree is long gone and the process has become a little more complex to register, transfer and replace lost or stolen certificates. While the vast majority of shares are now either held in electronic form (also called book entry form) or in "street name" in a brokerage account, some shareholders still insist on having physical possession of their certificates.

Things You'll Need

• Name of the company
• Name of the transfer agent for the shares
• Name and Social Security number of the current registered owner
• Certified death certificate if registered owner is deceased
• Share certificates (if not lost)
• Most recent account statement (if shares are held electronically)

Instructions

Transfer Agent

1. 

   Transfer agents print and send out certificates for all stocks that trade on an exchange.

   If you don't know who the transfer agent is, go to the company's website and click on either shareholder services or investor relations. Many companies, such as Walt Disney, actually act as their own transfer agents. They have dozens of employees who handle only their own shareholder's needs. This is the easiest route for shareholders, as you have only one set of rules to follow. You will be directed either to the outside transfer agent or the department that can help you.

2. If you are just trying to get a physical certificate, you must make the request in writing and submit it to the transfer agent. If you are working directly with the transfer agent, there is usually no fee. If your shares are held in street name by your brokerage firm, the firm will typically charge a $50 fee to have a share certificate issued to you. It can take as long as eight weeks to get your certificate.

3. 

   Signatures must be witnessed and guaranteed by an independent third party in a stock transfer.

   If you are transferring or gifting shares to someone else, you will need to sign the back of the certificates in the presence of a witness who participates in the Securities Transfer Agents Medallion Program, the officially recognized signature guarantee for the financial industry. Most transfer agents will not accept notary public signature guarantees. Most commercial banks, however, will "medallion-stamp" your certificates free of charge. Your signature must be exactly as your name appears on the front of the certificate, even if that is not your "normal" signature. If your name has changed, you must provide proof of the name change, such as a marriage or divorce certificate.

4. 

   Trackable insured delivery is the recommended method for sending shares to the transfer agent.

   Once you've signed and dated the certificates and proved your ownership, the shares must be sent to the transfer agent for re-registration. Although regular mail can be used, it is best to use either a courier service or some type of direct delivery service with a tracking identity. According to Australia-based Computershare, the largest transfer agent in the world, you should purchase insurance equal to 3 percent of the value of the shares. This covers the surety bond needed to protect the issuer in the event that someone else presents the shares for registration at the same time. That is also the charge to replace any lost or stolen certificates.

5. Although the internet has streamlined much of this process, it still takes four to six weeks to get certificates returned. It is one of the reasons most investors choose not to have the certificates. Holding them in a brokerage account transfers all the safekeeping and liability to the brokerage firm with very little downside risk to the investor.

Tips & Warnings

• If you have certificates, keep them in a safe or safe deposit box.

• If you own stock through a direct purchase plan, keep it that way. There is no cost to you.

• Keep photocopies of your stock certificates in case they get misplaced or stolen.

• Never sign your shares without intending to sell or deposit them into an account. Once you sign them, they are just like cash or signed checks made out to cash.

References

• Securities and Exchange Commission: Stock Certificates, Lost, Stolen
• Securities Transfer Association
• Computershare: Transfer Kit for U.S. Citizens