We’re living in a digital world now. Most offices have embraced a paperless system. Many of the transactions we do today are now done online. There are very few exchanges of physical documents now. That’s not to say that they’re gone though.
Old habits are still hard to break. So is our previous systems. There are still many people who find comfort in paper documents. They need tangible proof of what they have. A case in point is stock certificates.
There are still millions of physical stock certificates in circulation in the US. Many investors keep them in different locations. They can become hidden in safety deposit boxes or a dingy box in their garage. There’s also a big chance an investor will flat-out forget about them.
Wherever they’re stored, these certificates are in danger of becoming misplaced. They could also become damaged. Someone might also make a mistake and destroy them.
What should you do when you lose a stock certificate form? The first thing you need to do is calm down. There’s no need to panic. You’re still the owner of those shares. This will remain true even if you lose your stock certificate. You still have all the rights attached to those securities. Your next step is to look for the missing certificate. Here are some steps to finding lost stock certificates you can follow:
Search Your Home
Your home should be the first place you search. Go through all your papers and documents at home. Many people will put an important document in a safe place at home and forget where they’ve placed it. This happens to tax returns, diplomas, and insurance policies.
It’s best practice to put all your important documents either in a strongbox or a filing cabinet. These documents must be easy to access but away from the usual traffic that happens in your home. You don’t want to put them in a kitchen drawer with the recipes or keys.
Get in Touch with Your Broker
If the search of your home turns up nothing, then it’s time to call your broker. You might have given your share certificates over to them for safekeeping. Many people do this and forget that they did it in the first place.
You should also double-check that you have received the certificate. It could be they never issued one or you forgot to request it. Reliable brokers usually keep hold of their clients’ unregistered certificates. Your broker will also have digital records of your shares. They’ll have the company’s name, the date you bought the shares, and how many you’ve purchased.
Contact the Company
You can also get in touch with the company. Talk to their investor relations department. Give them your information and ask about the stock certificates registered to you. They’ll have a detailed record of this transaction. You can get their help in tracking your lost stock certificate and whether it’s delivered. If you signed for it, then you have confirmation you’ve misplaced it. If not, then someone might have stolen it.
You can also check with the SEC. The department has a Lost and Stolen Securities Program. This was also created to prevent the trafficking of lost or stolen securities.
Ask for a Stop Transfer
Another thing you should do is to ask for a “stop transfer.” Call your transfer agent or broker. Have them arrange this.
A stop transfer will prevent your certificate from becoming transferred. Another person or party could claim it. This could happen if they sign your name to them. Remember that your name will be on the certificate.
Your transfer agent or broker will report any lost or stolen certificate to the SEC. If you end up finding your certificate, don’t forget to inform your agent or broker. They’ll lift the stop transfer order.
Get a Replacement
If all else fails, order a replacement certificate. Call the company you’ve invested in for this. You’ll have to sign an affidavit of lost stock certificate first. It will provide an explanation of the situation. You then have to indemnity bond. This clears all parties of any responsibility if your certificate becomes transferred.
Keeping Your Securities Safe
You don’t have to worry about lost or stolen certificates with Legacy Stock Transfer, Inc. We’re a full-service stock transfer company. We serve public and privately held enterprises. We provide personalized services. We handle everything from direct registration to multi-channel communications. Our services also include DTC eligibility, and replacing lost stock certificates. We also help issue new ones. Give us a call at 972-612-4120 or email us at info@legacystocktransfer.com.