Registering Stock Certificates

If a person loses a stock bond or other certificate through fire theft or whatever shares registered in the stock holders name as opposed to so called street name can be replaced fairly quickly and easily.

Registering stock certificates. How to re register stock certicificates. But public companies have largely abandoned physical certificates in favor of the direct registration system drs which allows investors to have their securities registered directly on an issuers books. Some companies dont even print certificates any more. The underlying theme is a transfer of ownership.

Today most trading is done electronically with shares registered in the industrys direct registration system. If youve ever owned a paper stock certificate you know they can be misplaced stolen or destroyed. Becoming a registered holder is not as convenient or cheap as holding securities in street name but it is preferable to holding physical certificates which can be lost damaged or stolen. Private companies issue some sort of stock certificate that serves as an official record of ownership and lawyers handle the mechanics of sales transfers etc.

Such certificates are supposed to carry a legend usually a stamp on the face of the. Stock certificates represent a shareholders ownership in a corporation as a way for investors maintain and prove their ownership of stock. This can be due to the death of an individual name change gifting or stock transfer. If you have received stock from an employer as part of your compensation or have invested via a private placement of stock in a company that later issued an ipo you might hold a certificate for unregistered or restricted stock.

With the direct registration system this a problem you will never have to face. You will need to gather certain information and find a transfer agent in order to. Physical certificate the security is registered in your name on the issuers books and you receive an actual hard copy stock or bond certificate representing your ownership of the security. Lately things have progressed a little for private companies with the introduction of e certificates but public markets have already come up with an even better solution.

Street name registration the security is registered in the name of your brokerage firm on the issuers books. To get started registering your stock certificate youll need to get the name of the company transfer agent which is an entity separate from the company issuing the stock charged with handling the management and maintenance of shareholder documents. To replace a lost certificate begin by contacting the appropriate transfer agent. Transfer agents are typically listed in a companys annual report.

Stock transfer agents are often listed on aread more. Nonetheless you might still have stock certificates in your possession. There are no paper stock certificates to lose when you use drs.