The move into the digital era means big changes in the stock market. Most stocks are now in electronic format. This is also called “book-entry” shares. It makes buying, selling, and managing shares more convenient.
There are occasions when investors want to have a physical stock certificate though. Many investors want it as a tangible proof of ownership. Others do it for sentimental reasons or look at stock certificates as part of a collection. But how does one get a physical stock share certificate? This post will guide you through the process.
Defining Stock Certificates
A stock certificate represents one’s ownership of shares in a company. It’s a physical document that includes several crucial details. Share certificates have the company’s name, the shareholder’s name, and how many shares they have. The document also has an official seal or the signatures of company representatives.
Many investors prefer to have electronic records of their shares. This doesn’t mean paper share certificates are obsolete. Many shareholders still ask for physical copies of stock certificates. These documents remain valuable for historical reasons.
How to Get a Stock Certificate
Electronic trading is a dominant force in the stock market today. Many investors still want a physical stock certificate despite the popularity of digitalization. There are several reasons for this. A physical document is a tangible proof of ownership. It’s also a form of security against brokerage failure. This also reduces the risk of account hacking. No one can hack physical certificates. Hackers can’t change them via digital means.
So how does one get a copy of a stock certificate? The process is easier than it seems.
- Check with your brokerage firm. This is the first step to getting a stock certificate. Investors have to request their broker to issue them a certificate. They can try reaching out to their broker’s customer service team. Ask about their process for issuing a physical certificate. A little warning though. Some firms don’t offer this service anymore. Others charge a fee for the request. This can range anywhere from $50 to $500.
- Verify stock ownership. The broker will need to verify share ownership before issuing a stock certificate. The verification process is quick and easy for digital shares. They’re held either through a brokerage account or direct registration. The investor must ensure their account details are correct.
Take note that not all stocks are eligible for physical certificates. This is especially true if one holds investments in international companies. The owner must confirm if the broker can issue the stock in certificate form.
- Request for a certificate. Once the broker verifies ownership, the investor can submit a formal request. The process entails filling out a stock certificate form. They can do this online or via mail. The form will ask for the account number, number of shares, and other relevant details.
The investor must also specify the delivery method. Is it through standard mail or courier? The owner can also pick up their certificate in person.
- Wait for the processing. Issuing a stock certificate isn’t an instant process. It could take several days to a few weeks. The investor should confirm the timeline. Ask the broker for an estimate of the processing and delivery time. Take advantage of tracking services. This ensures the certificate arrives in one piece.
- Store the stock certificate in a safe place. It’s important to store the document in a safe place once it’s received. It’s because replacing lost certificates is a long and expensive process.
Many investors store their stock share certificates in a safe deposit box. Some invest in a fireproof and waterproof safe so they can keep the document at home. Investors should also scan a copy of the stock certificate. They should keep it in a secure digital location for easy reference.
Providing Customized Solutions
Ready to simplify your stock transfer process? You can trust Legacy Stock Transfer with it. We’re a family-owned business that’s been operating since 1996. Our experienced team is ready to provide expert, personalized service. We can help with issuing certificates and maintaining shareholder records. Our company also specializes in stock splits, restriction removals, and shareholder registries. We can also replace lost or stolen stock certificates. Give us a call at 972-612-4120. You can also message us here and a trusted transfer agent will get back to you.