What to do if you find an old stock certificate?
Key Takeaways
- If you find an old certificate, it's important to know where to start looking.
- Look for the company name and location of incorporation, a CUSIP number, and the name of the person with whom the security is registered.
- If you have been successful in finding all this information, you will need to locate the name of the transfer agent.
Can you sell stock without the certificate?
You can sell your shares directly to friends, neighbors or total strangers at the local coffee shop. You’ll need the stock certificates, and the buyer will need cash or a certified check. You might accept a regular check if you’re trusting or if the buyer is willing to accompany you to the local bank branch.
What to do with an old stock certificate?
You'll need to provide them with either:
- the name of the company
- the date of the certificate
- the state of incorporation
How to determine the value of an old stock certificate?
Is It Worth It to Cash in Old Stock Certificates?
- The Key Pieces of Information. Start by looking at a few things on the certificate. ...
- Transfer Agent. If you have been successful in finding all this information, you will need to locate the name of the transfer agent.
- The Importance of Documentation. ...
- Have Someone Else Do the Work for You. ...
Are old stock certificates valid?
An old stock or bond certificate may still be valuable even if it no longer trades under the name printed on the certificate. The company may have merged with another company or simply changed its name.
How do you authenticate a stock certificate?
If you recognize the corporation that issued the certificate and know it is still operating, simply look up its website and contact the investors' relations office. Each stock certificate has a unique number printed on it that the corporation can use verify the certificate's authenticity and confirm its current status.
How do I research old stock certificates for free?
Call a discount or full-service brokerage house and provide the CUSIP number, which is unique to each individual stock certificate, and stock brokerages can use this number to find out exactly the status of the company. Most larger discount brokerage houses will do this search for free, but be sure to ask first.
How do I verify stock ownership?
In the digital age, you can prove stock ownership without holding a physical certificate. However, if an investor wants a stock certificate, he can request that his brokerage house issue a certificate, or they can contact the company that issued the stocks.
How do I redeem old stock certificates?
The ownership transfer form can be found on the back of the stock certificate. Take the certificate to a notary public, and sign it in the notary's presence. Send the stock certificate to the transfer agent by certified mail along with any required documentation of your ownership rights.
How do I redeem old share certificates?
2. Raise a Request for Dematerialization of SharesStep 1: Contact your DP for a Dematerialization Request Form (DRF).Step 2: Fill up the DRF with all the required details and put your signature. ... Step 3: Your DP will process your request after receiving the DRF along with the surrendered physical share certificates.More items...
How much are old stock certificates worth?
Old certificates can be worth anywhere from $10 to $10,000, although most samples will fall in the lower end of the range. Collectors value certificates for the history of the issuing companies and also as art.
Are old mining stock certificates worth anything?
In general the stock probably is not worth anything. If the company listed on a stock certificate was incorporated in Arizona or the Arizona Territory, you can determine if the company is still active, or how and when it became inactive, by calling the Arizona Corporation Commission at 602-542-3026.
Is a share certificate proof of ownership?
A share certificate is a written document signed on behalf of a corporation that serves as legal proof of ownership of the number of shares indicated. A share certificate is also referred to as a stock certificate.
Are stock certificates signed?
The majority of certificates are signed by a company representative and the individual responsible for their registration. They may also include an authenticity seal. Today, most businesses only issue stock certificates upon request. Still, you could request a copy directly from the company or through a lawyer.
What can you do with paper stock certificates?
You can't convert stock certificates into cash like you do with a cheque, even though both certificates and cheques are both made of paper and have your name on them. Instead, you need to deposit the certificates into a brokerage account first. Then you can buy and sell securities, like stocks, bonds and mutual funds.
What do you do if you have a stock certificate?
What do you do if you have a stock certificate? The first step to determine the value of the stock is to see whether or not the company still exists.
Why are stock certificates worthless?
Some stock certificates that are worthless as securities may have value as collectibles: because of the people who signed them or owned them. because of an interest in history. because of the design or quality of the engraving. You can find collectors and dealers in such sources as:
What if the above sources don't help?
What if the above sources don't help? Certain records are kept by the state under whose laws the company was incorporated. Be aware that the state of incorporation and the state in which the company is located may not be the same.
Can a private company sell their stock to the public?
Private or closely held companies do not sell their stock to the public. Unlisted companies can sell their stock to the public but are not listed on stock exchanges. Most company information that is published covers the small number of companies whose stock is traded on one of the major stock exchanges.
How to prove ownership of a stock?
When proving that you own the stock, you need to start with the owner's name that is listed on the stock. Now work your way backward to trace the ownership. Depending on how old the stock is, this could be as simple as starting with a parent. It could go back further though, and that's when things get confusing.
What to do when you find old stocks?
When you find old stocks, the first thing you need to do is find out if the company still exists. If the company doesn't exist, it most likely is worth nothing as a security. But don't give up all hope just yet. It may be worth something as a collectible. There is a whole community of people who collect old stocks.
What happens if a company no longer exists?
If the company no longer exists at all, don't lose hope! You may find that your stock is valuable as a collectible. In the last twenty years or so people have begun to collect stock certificates that are for companies that are no longer in existence. Some collectors want the certificates for their artistic beauty.
Why are old stocks valuable?
There is a whole community of people who collect old stocks. Not just any stocks are collected though. They are valuable because of their design or quality. Or they could be worth something because of the person who signed or owned them. You may also find someone who wants them purely for the history of them.
When was the stock market first traded?
The first stock traded was for the Bank of New York in 1792.
Can you cash out old stock certificates?
If not, you may find a collector who is interested in them. Whatever you ultimately decide, make sure you don't lose your old stock certificates by storing them properly. This will help keep them safe and retain their value.
Do you need proof of ownership to cash in a will?
When you go to cash in your certificates, you will need to show proof of ownership. This could be as simple as showing a death certificate and probated will. Other times it may be more complicated and require you to hire an attorney. If you are unsure of your situation, it is best to hire an expert to advise you.
When did stock certificates end?
The demise of the stock certificate ends a centuries' old tradition. One of the oldest known examples of a stock certificate, found in Holland, was issued in 1606. It was around that time that the Dutch East India Company became the first company to issue stock.
How to get a share certificate?
The most obvious way to get your certificate is to go directly to the company that issued the stock, the issuer, and ask to have a physical certificate mailed to you. But going through the company can be an expensive and time-consuming process.
How to cash in stock?
In order to cash in the stock, you need to fill out the transfer form on the back of the certificate and have it notarized. Once complete, send the notarized certificate to the transfer agent, who will register the stock to you as owner. At that point, you can sell the stock through the transfer agent or via a stockbroker.
When did Disney retire frame ready certificates?
Although this change may not seem very newsworthy, it occasionally did hit the news, as in 2013 when Disney retired its frame-ready certificates that featured The Walt Disney Company's ( DIS) most notable cartoon characters. Today, most of the world's exchanges have either done away with or are phasing out paper certificates.
Is it easier to prove stock ownership?
Today, most of the world's exchanges have either done away with or are phasing out paper certificates. Stock ownership is much easier to prove now thanks to electronic records and electronic communication networks (ECN) .
Is a stock certificate a collectible?
Outdated Certificates As Collectibles. Stock certificates were often plain, straightforward documents. In their heyday, however, companies competed to create the most visually impressive certificates, which frequently were appealing examples of a printer's art. Some stock certificates are now collectors' items.
What is stock certificate?
Stock certificates provide proof of ownership of shares of stock in a corporation, but they are not the actual ownership interest. A stock certificate is not like a dollar bill or a bearer bond that is owned by anyone who has physical possession of the instrument. The owner of a stock certificate is the person whose name is printed on the face.
What happens to stock certificates when someone dies?
It's personal property, so if the person who owned the certificate is deceased, the ownership rights passed to his heirs in accordance with the disposition of his estate . You may do all of the legwork to establish the authenticity of this stock certificate from the 1900s, only to have to turn over the prize to a second cousin you ...
What to do if you don't recognize the corporation that issued the certificate?
If you do not recognize the corporation that issued the certificate, you can contact the business registration office in the state where the company was incorporated to determine if it is still in business, has changed names, has closed down, or has been acquired by or merged with another company.
Is a stock certificate from the 1900s still valid?
Determining if a stock certificate from the 1900s is still valid requires a bit of legwork, but as long as you recognize the company and it's still in business, authenticating the certificate is not difficult.
Do corporations keep records?
Corporate Record-Keeping. Corporations are required by law to keep an up-to-date record of their shareholders. Many corporations that were operating in the 1900s are still in business today.
What happens if a stock splits over years?
If the stock has split over the years, the amount listed might not be the amount your certificate is worth. Contact the stock certificate's transfer agent, who is responsible for keeping records for stockholders. The agent is listed on the certificate itself.
Can you throw away old stock certificates?
Old stock certificates shouldn't be simply thrown away. They can still have value if they represent an existing or merged company, or if they are valued as collectibles. A little bit of research can help you determine the worth, if any, of your old paper stock certificate. Step 1. Determine whether the company is still traded on a stock exchange.
Can you transfer ownership of stock to your name?
The transfer agent will have a record of the person's name on the stock certificate; ownership can then be transferred to your name. This can be done in many different ways, so it's always best to contact the transfer agent and request instructions. Many of them are extremely picky.
Can stock search companies help you find stock guides?
Stock search companies may also publish or help you find stock guides to assist you in investigating an old stock. However, it is often the case that the company will charge you more than the stock is actually worth. (For related reading, see: I Lost My Share Certificate.
How to know if a stock certificate is still valid?
Also, all seals and signatures should be undamaged. In other words, there should be no hole punches or stamps over any of the seals or signatures on the certificate.
What should be on the back of a stock certificate?
You have the information you need to investigate the worth of your old stock certificates. The transfer agent’s name should also be on the back of your stock certificate. If the stock certificate is very old, however, that information may be out-of-date as well.
How much does it cost to research old stock certificates?
The services of a stock certificate researcher may cost as little as $25 to $50. The stock certificate researcher can save the transfer agent a great deal of time.
Do you need a CUSIP number for a stock certificate?
This usually involves a fee. To do this, you’ll need the stock certificate CUSIP number. By law, every valid stock certificate must have a CUSIP number. The number is issued by the Committee on Uniform Security Identification Procedures.
Step 1: Head Down to the Library
There are reasonably priced databases although many of those are available at your local library.
Step 2: State Business Entity Search
Let's continue with Bowser Delaware Corp. from the previous steps example. The company was (as we assembled) incorporated in Delaware. From the state of Delaware we can receive the date of termination of the company and the company's last transfer agent which will be critical later on.
Step 3: Contact the Company's Transfer Agent
From our local library we were able to track down the various corporate changes that the company went through. From the Secretary of State's site we found a Business Entity Search. From this search we were able to gather the Transfer Agent information.
Step 4: Professional Help
At this point you have pieced together the entire corporate history for the shares that you own! If the transfer agent requires for you to get proof-of-purchase for your shares or any other legal matters arise it is at this point where professional help can be a very valuable resource.
Getting Started
Company Histories
- These sources report corporate financial events, obsolete securities, or company histories: 1. Capital Changes Reporter 2. Directory of Obsolete Securities 3. Fisher Manuals 4. MERGENT/Moody's Manuals 5. Smythe Manuals 6. Standard and Poor's Manual of Railroads It's a good idea to check business, city, and phone directories and periodical indexes. Consult both cu…
Corporate Records
- What if the above sources don't help? Certain records are kept by the state under whose laws the company was incorporated. Be aware that the state of incorporation and the state in which the company is located may not be the same. 1. For Maryland corporations, call the office of the Department of Assessments and Taxation, Corporation Division in Baltimore at (410) 767-1340. …
What Is Scripophily?
- The hobby of collecting old stock and bond certificates is called scripophily (pronounced scri-POPH-i-ly). Some stock certificates that are worthless as securities may have value as collectibles: 1. because of the people who signed them or owned them. 2. because of an interest in history. 3. because of the design or quality of the engraving. You can find collectors and deale…
Further Assistance
- If you need more information, your local library may be able to help. You'll need to provide them with either: 1. the name of the company 2. the date of the certificate 3. the state of incorporation or: 1. a copy of the certificate If you still can't find what happened to a company using these sources, you may choose to have the stock of incorporat...
Does The Company Exist?
The Company Exists
- There are a few places that you can look up stocks to determine if the company exists. Try the Over the Counter Bulletin Board, or the OTC Markets. Many companies are bought, sold, and merged. Because of this, you may find that the name you are looking for is different from the original company when the stock was bought. If you find that there is a...
Scripophily
- If the company no longer exists at all, don't lose hope! You may find that your stock is valuable as a collectible. In the last twenty years or so people have begun to collect stock certificates that are for companies that are no longer in existence. Some collectors want the certificates for their artistic beauty. Others like collecting them for their historical significance or the company's story.
How Much Are Your Old Stock Certificates Worth?
- So the next time you are digging around in grandma's attic and find some old stock certificates, don't just throw them away! Do a little investigation and find out if the company is alive and running today. If it is, you may be able to cash them out for a profit. If not, you may find a collector who is interested in them. Whatever you ultimately decide, make sure you don't lose your old sto…