Liquidating Old and Surplus Inventory: 11 Smart Ways to Get Rid of Excess Stock
- Refresh, re-merchandise, or remarket. When an item isn’t selling, the problem may not necessarily be the product...
- Double or even triple-expose your slow-movers to sell old inventory. This handy tip is from retail expert Christine...
- Discount those items (but be strategic about it).
- Refresh, re-merchandise, or remarket. ...
- Double or even triple-expose your slow-movers to sell old inventory. ...
- Discount those items (but be strategic about it) ...
- Bundle items. ...
- Offer them as freebies or incentives.
What should you do with old stock certificates?
If you've found or inherited a stock certificate and aren't sure what to do, you aren't alone. They are not as easy to buy and sell as electronic stocks, and an investor might not even be able to cash them in, if for example, the company has long since closed. Happening upon old stock certificates is actually pretty common.
What is it called when you collect old stocks?
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: because of the people who signed them or owned them.
What should you do with obsolete stock?
Many companies are unsure what to do with obsolete stock and make the mistake of not liquidating it right away. Some companies will sit on their obsolete inventory to avoid showing a large write off or expense on the quarterly report.
How do I sell stock in my car?
He suggests you speak to a good certified public accountant who can walk you through the options available to you. Or, if you hold the stock in certificate form and have questions about how to sell, contact Motors Liquidation Company's transfer agent at (800) 331-9922.
Are old stock shares worth anything?
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 I cash in old stock certificates?
If you find yourself in possession of old stock certificates, you have a few options for selling them. You can cash them in through the transfer agent of the company with which the stock is owned. Or, you can work with a broker to sell the stock.
Do stock certificates expire?
Stock shares do not have an expiration date. There are companies listed on the stock exchanges whose shares have traded for over 100 years. However, there are several circumstances in which the shares of a particular company stop having any value.
How do I sell my old stock?
10 strategies to sell excess inventorySell online.Offer sales.Bulk discounts.Give products extra exposure.Product bundling.Remarketing.Liquidation.Donate for a tax write-off.More items...•
How do I find out if old stock certificates are worth anything?
Contact your stockbroker to search the stock's worth via its CUSIP number if the steps given earlier yield no results. This number is printed on the back of the stock certificate. Use a fee-based service to search your stock's history if the earlier steps come up empty. Fees can range from $40 to $85 or more.
How do I know if my old share certificates are still valid?
Another way to check on a share certificate's validity is to contact the company registrars whose name should be written on the certificate. Companies use registrars to keep a record of who owns their shares.
How do I sell shares with a certificate?
Certificated share dealing accounts allow you to sell paper share certificates....How to sell your shares onlineComplete an application confirming your personal details.Share the information on your certificate as proof of ownership.Send your certificate and printed application to the broker to confirm the sale.
How do I redeem a stock certificate?
0:001:21How to Redeem a Stock Certificate - YouTubeYouTubeStart of suggested clipEnd of suggested clipSo how to redeem a stock certificate a number of different ways of doing that most commonly youMoreSo how to redeem a stock certificate a number of different ways of doing that most commonly you would take your certificate to your local brokerage. Give them the certificate.
What can you do with paper stock?
Investors who are in possession of a paper stock certificate, should look to start a long-term relationship with an online brokerage. It's best to open your account and fund it with savings first, be a customer for awhile and then talk to the brokerage about services that might be able to convert the paper certificate.
What if no one buys my stock?
When there are no buyers, you can't sell your shares—you'll be stuck with them until there is some buying interest from other investors. A buyer could pop in a few seconds, or it could take minutes, days, or even weeks in the case of very thinly traded stocks.
How do you get rid of a stock that won't sell?
What can I do? You generally need to sell shares to be able to write off the loss. But if the company goes completely out of business and there isn't anything left for shareholders, then you can deduct the loss as a worthless security without selling it.
What is the 3 day rule in stocks?
In short, the 3-day rule dictates that following a substantial drop in a stock's share price — typically high single digits or more in terms of percent change — investors should wait 3 days to buy.
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 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.
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 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.
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.
How to act before excess stock becomes obsolete?
Act before excess stock becomes obsolete. Make sure you can track products through their product life cycle. Once your inventory reaches the obsolete stage, it’s typically too late to take actions that will result in a profitable return on investment.
What is obsolete stock?
Obsolete Stock is a term that refers to inventory that has reached the end of its product life cycle. In this stage of the product life cycle, there is no market demand for the product. Companies that have not accurately forecasted a decline in demand or effectively reduced their stock replenishment policies often times are left with large ...
Why do companies sit on obsolete inventory?
Some companies will sit on their obsolete inventory to avoid showing a large write off or expense on the quarterly report. This is because it’s never easy to admit that a once large investment, which was supposed to yield revenue, has become an expense to the business.
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.
The Key Pieces of Information
Transfer Agent
- If you have been successful in finding all this information, you will need to locate the name of the transfer agent. The easiest way is to contact the company and ask it directly. The main reason you need to go to a transfer agent is companies rarely handle their own securities in-house. They prefer to have another company take care of the bookkeeping and issuing of securities. The tran…
The Importance of Documentation
- If you are inheriting securities, ensure the individual whose name is on the certificate has bequeathed it to you. A probated will with the necessary signatures of the executors may be required by the transfer agent before it will transfer ownership. Once the certificates have been delivered back to you in your name, you can deposit them with a broker and sell them accordingly.
Have Someone Else Do The Work For You
- For those of you who have gone through all of these steps without any success, there are other means by which you can have your old stock certificates researched, but they will cost you some money. For a fee, stock search companies will do all of the investigative work for you and, if the certificate ends up having no trading value, they may offer ...