In the United States, from the early 1300s to today, people have seen stocks as a way to earn money. This was apart from the usual buy and sell and working a 9-5 job for a salary. More people than ever put their extra income in stocks. They hope to gain money with minimal effort, at the right place and time.
Companies had to endure. To entice people to invest, they began to issue stock. The value of the company’s shares rises once investors have traded it. Companies provide stock certificates. They are evidence of ownership of a part of the business.
In the old days, many companies issued these certificates on paper. Yet, irresponsible individuals may misplace their actual stock certificates. Companies now provide direct registration shares as automation increases. They provide a different method of storing your inventory.
Let us discuss what direct registered shares are and how they can make your life easier.
What Are DRS Shares?
Direct registration shares (DRS shares) let investors in public companies own them. They can store or transfer them through electronic means. They don’t use physical forms. A DRS share also allows stock owners to register their shares in their name. The issuing company secures the shares.
Investors and the company often register and/or transfer DRS shares. They do so with a stock transfer agent as a middleman. You need a depository trust company to keep direct registered shares safe. This company centralizes electronic security records and shares.
Why Should I Opt For Direct Registration Shares?
Opting for DRS as a way to hold your share of stock entails several advantages. Here are the following benefits of direct registered shares.
- Cost-effective. You do not worry about losing it. You’d have to replace it with another copy, which could cost more. You can trust the company to keep your DRS shares safe. They will do so using efficient online methods.
- Safe And Secure. The number of damaged DRS shares decreases. The issuing company stores them online. Other companies provide encryption or password protection for their investors’ shares. Only they or the investor can access it.
- Ownership Straight to the Investor. As the name implies, you can be sure that you have sole ownership of your share.
- Efficiency of Transfer. A stock transfer agent can help. They can transfer your direct registration shares to another company or party online. This makes the transfer much faster and simplifies the whole process.
- Consistent Communication. Because communication is online, you get to experience transparency at its finest. You receive updates on your direct registered shares via email or SMS. These updates include company news about your DRS share.
How To Transfer Shares to DRS?
At this point, you have decided to transfer your physical shares to DRS. Here are the steps you need to undertake to transfer your shares to DRS.
Call a Stock Transfer Agent
Every company has a trusted stock transfer agent for its own needs. One of the services that a stock transfer agent offers is DRS. Get to know the stock transfer agent of the issuing company of your stocks. After getting their information, make an initial contact. Ask to know the requirements you need to request.
Fill out the Forms
The broker or stock transfer agent will send you a list of forms or requirements that you need to fill out. Fill them out with pertinent information, as well as the details of the issuing company.
Provide Proof of Ownership
You may also need to provide more documents. The stock agency needs them to verify your identity. Documentation may include utility bills, valid IDs, and more. Also, produce a copy of your physical stock certificate for full verification.
Pay the Necessary Fees
The stock transfer agent will give you billing. They will also tell you when to move your shares to the Direct Registration System.
Take Your Time for Processing
The transfer may take weeks or months. It will make your shares registered. Do not fret, as they will give you updates all the time through emails, social media, or through SMS. This is to give you the transparency that you deserve in handling your stocks.
Transfer Confirmed
Once the stock transfer agent finishes the transfer, they will tell you again. They will do this through a notification on your channels. After which, you may now start trading your DRS shares or keep them to mature.
Swift Stock Transfer Services
Looking for a stock transfer agency? Legacy Stock Transfer is here to help you. We’ve built an excellent portfolio of stock transfer services over the years. It covers shareholder certificate mailings and securities transfers, including DRS, DWAC, and FAST. We also offer applications for DTC eligibility and mail management for your investors.
Call our stock transfer team at 972 612-4120 or email us at info@legacystocktransfer.com.
