how to sell stock shares without a broker

How to Sell Stock Without a Brokerage Firm

• Sell Shares to Transfer Agents. One way to avoid a broker is to contact the investor relations department of the...
• Consider Direct Purchase Plans. Many corporations, especially blue chips, will buy and sell their own stock through a...
• Sell Shares Directly to Others. You can sell your shares directly to friends, neighbors or...

Full Answer

How to buy stocks without a broker?

• Gold mining stocks
• Gold futures and options
• Gold ETFs (exchange-traded funds)

How to sell stock without a brokerage firm?

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.

How to buy and sell stocks on your own?

Which is the best stock platform for beginners?

• Robinhood: Simple-to-use mobile investing on the go
• Charles Schwab: Great all-around stock broker with many investment options and investing platforms to choose from
• Acorns: Round up your purchases to invest your spare change
• Cash App Investing: Simple-to-use mobile investing and banking in one

Can transfer agent sell stock?

You can sell your shares directly to the transfer agent. If you have possession of the stock certificates, you’ll need to sign them and send them to the transfer agent, along with whatever paperwork the agent needs. You’ll probably have to include a fee, although some agents may perform this service for free.

Do I need a stock broker to sell my shares?

Yes, you can buy/sell stock from/to a friend, relative or acquaintance without going through a broker. Call the company, talk to their investor relations person, and ask who the Transfer Agent for the stock is.

How do I sell stock certificates without a broker?

One way to avoid a broker is to contact the investor relations department of the corporation whose shares you own and identify the company's transfer agent. You can sell your shares directly to the transfer agent.

Can you sell stock privately?

To sell private company stock—because it represents a stake in a company that is not listed on any exchange—the shareholder must find a willing buyer. In addition, a sale of private stock must be approved by the company that issued the shares. Some companies may not want their shares to be widely distributed.

Can you sell stock directly to another person?

Stocks can be given to a recipient as a gift whereby the recipient benefits from any gains in the stock's price. Gifting stock from an existing brokerage account involves an electronic transfer of the shares to the recipients' brokerage account.

How do I cash out my stock?

You can cash out of your stocks in four steps: Order to sell shares – You need to log on to your brokerage account and choose the stock holding that you would like to sell. Place an order to sell the shares. The brokerage will raise a unique order number for the order placed.

How do I sell shares of stock?

If your stock is already in a stockbroker account, then you should be able to sell the stock directly from your account.Step 1: Pick a Broker. ... Step 2: Try Out the Broker's Trading Platform. ... Step 3: Deposit Your Stock and Fund an Account. ... Step 4: Sell Your Stock.

What happens if I don't sell my shares when a company goes private?

Unless you own a substantial block of shares, you will have no influence on management. Because they are offering a premium over current price, it's likely that a majority of shares will be tendered, resulting in a thin market with low liquidity.

How do you raise capital when selling shares?

Selling Shares Another way a mature firm can raise capital is by selling shares of their company. An investor can purchase shares of the business for an agreed upon amount, essentially giving them a piece of ownership in the company. This allows investors to share in the company's profits as the business grows.

Can a company sell your shares without your consent?

Your broker cannot sell your securities without getting permission from you. A financial advisor needs the proper authorization to execute any transaction on your brokerage account. Whether it is buying a stock, selling securities, or moving money around, unauthorized trading is a very serious legal violation.

Can I transfer shares to a family member?

Here are the rules: You can't be selling shares to a family member. You or a family member must have owned the shares during the 24 months before the sale. At least 50 percent of the company's assets in that 24-month period must have been used for business purposes in Canada.

Can you choose who to sell stock to?

A broker is not required to buy from you if you want to sell shares and there is no one willing to buy. A broker won't lose money when a stock goes down in a bear market because the broker is usually nothing more than an agent acting on the seller's behalf when they find somebody else who wants to buy the shares.

Can I buy stock from a friend?

Yes, you can buy/sell stock from/to a friend, relative or acquaintance without going through a broker. Call the company, talk to their investor relations person, and ask who the Transfer Agent for the stock is. The Transfer Agent is the person who accomplishes the transfer, i.e., by issuing new certificates with the buyer’s name on them.

Can you own restricted stock?

If you own stock in a company that was issued prior to the time the company went public, depending on a variety of conditions in the SEC regulations, that stock may be restricted, and restrict ed stock requires some special procedures when it is sold.

What is direct stock purchase?

Some companies sell stock through what's called a direct stock purchase plan. In that case, you buy stock directly from an agent representing the company. The plan manages the stock for you, with no broker required.

Do all brokerages charge the same fees?

Not all brokerages charge the same levels of fees. So-called full-service brokerages generally charge more in exchange for offering you additional services, like investment advice. If you just want to buy stock of your own choosing without paying those fees, you can use a discount brokerage instead. Many of them are available exclusively online or charge extra for offline services.

What is a sell order?

Types of Sell Orders. The most basic way to sell a stock comes through what’s called a sell order. Once you know you're going to place a sell order, you've got to decide what type of sell order you'd like to place. The main types of sales-related orders include:

What is buy and hold strategy?

This is known as a “ buy and hold ” strategy, and it's favored by billionaires like Warren Buffett and Charles Brandes. When you finally decide to sell, you'll know how to execute the order with just a couple of taps, clicks, or conversations.

How many types of sell orders are there?

There are three types of sell orders to choose from when selling your stock. It helps to work with a financial advisor to understand your stock’s value better if you’re unsure. There are many techniques for helping you decide when to sell a stock, but the best one is to set a target price and sell the stock when it hits it.

Do investment apps charge commissions?

First-time traders are particularly fond of playing the market this way, as many investment apps do not charge commissions on trades. Some apps are offered by relatively new financial companies, such as Robinhood, while traditional brokerage firms also offer their take on trading apps.

Do you have to formalize a sell order?

You don't have to formalize it in a sell order—it could be as simple as jotting down your thoughts on a sticky note at your work desk. For example, you may have bought a stock at $20 per share, and set a goal to sell when the stock hits $30 per share.

How to sell stock without a broker?

Therefore, to sell stocks without a broker, you will need to locate the transfer agent of the company that issues the stock. To explain, the transfer agent has the legal power to sell the stock and access to an exchange or a brokerage account.

What are the problems with buying stock without a broker?

There are serious obstacles that can bar the average person or retail investor from the stock market. Transaction fees, hidden fees, and trading fees can eat up all or most of your profit, for example.

What is a brokerage account?

A brokerage account is a gateway that gives customers access to the exchange. Therefore, anybody can buy stock through a brokerage account.

How long does it take for a transfer agent to sell a stock?

Hence, you will often make more money by selling shares through a brokerage account. Additionally, it can take several days or longer for a transfer agent to sell a stock and send you the money.

Can you buy stock with a portion of your salary?

In addition, many companies allow employees to buy stock with a portion of their salary. Generally, direct purchase plans deduct stock purchases from an employee’s pay. Thus, a direct purchase plan can limit your take-home pay.

Broker? Brokerage?

Why do you need a brokerage, but not a broker? Basically, no education or license is required to buy a stock. Becoming a stockbroker —someone buying and selling on behalf of a client—is another story. That requires passing the Series 7 and Series 63 licensing exams. 1 2

First Steps

If you decide that you want to start trading, and going solo is your style, you'll begin by selecting your brokerage. Consulting a well-researched, expertly-written guide may be the best place to start.

Bottom Line

Like riding a motorcycle or skydiving, buying and selling stock without guidance isn't for everyone. But smart investing should be available to anyone who wants to get into the market, so the option to hire a financial advisor or stockbroker is always there.

Should you use a broker or take a D.I.Y. approach to investing?

That depends on a few factors. Do you want to research your investments? Can you evaluate a company? Do you understand time horizon or your appetite for risk? Understanding these things requires time, so you want to consider handing your money to a professional.

What kinds of investments don't require a brokerage?

Direct stock plans and dividend reinvestment plans (DRIPS) permit individuals to buy shares from participating companies. You can buy stock from certain companies, and the plan will automatically reinvest the dividends the companies pay out. Of course, this option is available through online brokerages.

What are the basic steps in buying stock?

Investors must first find a brokerage they like. Then, they have to fund the account with a check or bank transfer. Researching investments is the next critical role, and implicit in this is understanding your finances, goals, and risk tolerance.

How much money does a short seller use to buy 10 shares?

The seller uses $50 of that $100 to buy 10 shares to repay the broker with and close the transaction. The seller's remaining profit is $50. Of course, if the shares rise in price, forcing the short seller to purchase them at a higher price than the short sell price, the seller sustains a loss.

What happens when a seller buys back a stock?

The shares the seller buys back are returned to the broker, thus closing the transaction. The ideal situation for the seller occurs if the stock price drops and the shares can be bought back at a lower price than the shorted price.

What happens if shares don't drop?

But if the shares don't drop and instead rise, the investor will have to buy them back at a higher price than what they paid, and thus lose money.

What is short selling?

Updated Oct 6, 2019. Short selling is essentially a buy or sell transaction in reverse. An investor wanting to sell shares borrows them from a broker, who sells the shares from the inventory on behalf of the person seeking to sell short. Once the shares are sold, the money from the sale is credited to the account of the short seller.

Why do people short sell?

The Appeal of Short Selling. Why do people use short selling? Traders may use it as speculation, a risky trading strategy in which there is the potential for both great gains and great losses. Some investors may use it as a hedge against the possibility of losing money on a bet on the same security or a related one.

Can you hold on to shares while waiting for the security to move higher?

However, holding on to shares for long stretches of time while waiting for the security to move higher is not without cost. The seller must take into account interest charged by the broker on the margin account that is required for short selling. Also, the seller must consider the impact of the money that is tied up in the short sale ...

How to sell stock at any time?

Once the stock shows up in your brokerage account, you can sell it at any time. Contact your broker and place an order to sell the stock. When you place the order to sell, you can set conditions on how the order is executed, as well as price restrictions and time limitation on the execution of the order.

How long does it take to transfer stock to DRS?

Sell your stock shares. It will take the transfer agent approximately 10 days to transfer your paper stock to DRS. Once this is complete, you can sell the shares at any time. When you are ready to sell, contact the transfer agent and tell them to sell.

What is a DRS stock?

The Direct Registration System (DRS) allows owners of stock certificates to hold their shares in book entry-form with the transfer agent instead of as a physical stock certificate. Book-entry means that the transfer agent keeps a record of your ownership of the stock in its books.

Is a stock certificate worthless?

But, if the stock certificate is worthless as a security, it may have some value as a collectible item. The hobby of collecting old stock certificates is called scripophily.

How to buy stocks without a broker?

There are multiple ways to start buying stocks without the help of a brokerage or a full-time investment broker. Consider whether your investment plans are for the long or short term ; DSPPs and DRiPs tend to work better for long-term investment strategies, while online brokerage accounts can be more conducive to both short- as well as long-term portfolio management. After all, there’s no one-size-fits-all approach to buying stocks solo; thoroughly research your options on buying stocks online before you decide on the trading solution that’s best for you.

What is the draw of online brokerage?

One of the biggest draws of online brokerage accounts is the low cost. Many such accounts charge nothing to trade certain types of securities, or the charge is minimal.

Can you buy shares of a stock using dividends?

The transfer agent you use, for example, will most likely need to determine the trade date for the sell. In the case of a DRIP, you can purchase shares of a stock using the dividends of the existing stock you already own. When the time comes to sell the shares, you can do so independently since there is no broker.

Do drips sell on the market?

Something important to keep in mind with DRIPs is they aren’t sold on the actual market, so when you complete a sale the company you purchased the stock from in the first place will purchase the stock back from you.