With the innovation of the Internet and mobile technology, it is pretty common for investors in the stock market to not worry about holding onto a stock certificate. The norm before the age of electronic information saw people holding on to stock certificates like they were gold. The logic behind it was having a genuine stock certificate meant that you really owned the stock you purchased and that no one could deny you the benefits of that investment. If you want the same security that people treasured and valued before, you can still redeem your stock certificate by following some basic steps.
Sign up for a trading account. If you do not have a trading account yet, then it is time to contact a stock broker and open one. Like in shopping, you should canvas around for the best rates, fees, and the most cost-effective minimum balance requirement. Various stock brokers will differ in fees and charges so make sure to inquire about this before you decide on the stock broker you want to open with. If you have a budget, divulge this info to the prospective broker so that he can offer you an investment portfolio suited to your financial capacity.
Consult a stock broker. Once you have a trading account opened, it is time to work out the details with your broker. Set up and appointment whether by phone or face to face and discuss your objective. In this case, you will want to tell him that your main objective is to sell the stock certificate. Whether you inherited or purchased the stock, tell him that you would want the stock certificate deposited for selling. However, make sure to hear him out if he has better options for you. Anyway, there should be some documents that you and your broker will need to work on. On your part, your signature will be the only requirement.
Endorse the certificate. Once the broker finishes the paperwork, he will either send or give the stock certificate to you personally so that you can properly endorse it for deposit. The only thing you should do is sign the certificate. Once signed send it back and attached a reminder on what your broker should do which is to deposit it into your trading account.
Sell your shares. Once your stock certificate has been deposited into your trading account, you will need to contact your broker to instruct him on what price you want to sell the shares for. You can either tell him to sell it at once at the current market price at the time of deposit or you can provide him a limit order. A limit order is a desired value per share that you will want to reach before your broker can sell it. Make sure to ask your broker on what value will be acceptable. If you want to sell it immediately, make sure to price it significantly lower than the market value.
As soon as you sell the stock certificate, you have already redeemed and converted it to cash. Obviously, any sell will mean you will have to pay the agreed stock broker’s commission. Remember to always keep this in mind when you sell any shares of stock.