Transferring Stock & Other FAQ's
If you wish to transfer your certificate(s), you must mail your certificate(s)
to the transfer agent. (We recommend all certificates be sent by registered
mail, insured with a return receipt requested). The certificates must
be appropriately signed by all registered holders, exactly as the name(s)
appear on the face of the certificate(s) or must be accompanied by a
Stock Power bearing the appropriate signature(s). In either case, the
signature(s) must be guaranteed by a financial institution participating
in an officially recognized Medallion Signature Guarantee Program. Additionally,
you should provide instructions indicating how you wish the shares transferred,
the name address and social security number for each transferee and
the number of shares to be transferred. In some cases additional documents
may be required to complete the transfer. Please contact the transfer
agent to determine other forms that may be required. Here are instructions
for transferring stock certificates:
What is Individual Registration?
This registration gives sole ownership to the single individual and
requires that the person's legal name be used. The use of a first name
is desirable. Example: Mary Smith (not M. Smith).
What is Joint Registration With Rights Of Survivorship (WROS)?
This registration is used when two or more individuals have equal claim
to the assets. Should one of the parties die, ownership of the assets
passes to the surviving tenant(s). Example: Mary Smith & Barbara
Smith Jt Ten WROS
What is Tenants In Common?
This registration allows an appropriate portion of the assets to pass
to the estate of the holder upon the holder's death rather than to the
surviving tenant. Example: Mary Smith & Barbara Smith Ten Com
What is Custodial Registration?
A custodial registration requires the names of the custodian and the
beneficial owner who is a minor is a common type. For example: Mary
Smith Cust Don Smith NY Unif Trans Min Act. (Note: The two letter state
abbreviation must appear before the "Unif").
How is a custodial registration changed?
To add or remove a name on a security held in custodial registration,
provide the transfer agent with the following:
- The certificate(s) should be properly endorsed by the current custodian,
if still living, or if the minor is now of age, the former minor may
sign.
- A certified copy of his/her birth certificate must be provided,
if the former minor signs. The endorsement should be Medallion Signature
Guaranteed.
- A letter of instruction indicating the full name, address and taxpayer
identification number for each transferee
- A Substitute W-9 certification form, completed for each individual
transferee. This form may be obtained from a bank or broker.
What is Trust Registration?
Registering shares in the name of a Trust requires that specific information
be provided: the name of the trust and/or the maker or beneficiary and
the date of the trust instrument. For example: Mary Jones Tr U/A DTD
4/15/98 The Mary Jones Trust FBO Mary Jones.
What is a TOD (Transfer On Death) Registration?
The owner of a security registered in TOD form must be a natural person
or natural persons holding the security as an individual or joint owners
with the right to survivorship (i.e. joint tenants or tenants by the
entireties). TOD registrations by non-natural persons (such as a trust
or a partnership) are not permitted. Only one beneficiary per registration
may be designated by the security owner. Registration in TOD form is
indicted by the abbreviation "TOD".
My legal name has changed, do I need to get my stock certificate(s)
re-registered?
Yes. If your name has changed legally (such as through marriage), you
must complete a Stock Power and send it to the transfer agent. The Stock
Power is printed on the reverse of your stock certificate or the reverse
of the account statement (if you don't have the actual stock certificate).
How are shares transferred to an individual or joint tenant?
To transfer shares to an individual or a joint tenant, provide the transfer
agent with the following:
- The certificate(s) should be properly endorsed by the registered
owner(s) or accompanied by a properly endorsed stock power. The endorsement
should be Medallion Signature Guaranteed.
- A letter of instruction which provides the full name, address and
tax identification number of each transferee and the number of shares
to be transferred to each transferee.
- A Substitute W-9 certification form, completed for each individual.
How is a deceased joint tenant removed as a registered holder?
To remove the name of a deceased owner from a security held in joint
registration, provide the transfer agent with the following:
- The certificate(s) which should be properly endorsed by the surviving
joint tenant. The endorsement should be Medallion Signature Guaranteed.
- A letter of instruction indicating the full name(s) address and
tax identification number for each transfereeA certified copy of the
decedent's death certificate
- An Affidavit of Domicile and, if applicable, an Inheritance Tax
Waiver.
- A Substitute W-9 certification form, completed for each individual
transferee. This form may be obtained from a bank or broker.
How can I obtain a copy of my 1099?
A copy of a 1099 may be obtained by calling the transfer agent. You
must provide your Social Security number and the name of the company.
What is a "Medallion Guarantee"?
A Medallion Guarantee takes the form of a stamp and signature on a stock
certificate or stock power and confirms that the signature on a certificate
or stock power is genuine. A Medallion Guarantee is obtained from an
eligible institution, such as a commercial bank, broker, trust company,
etc. Only institutions participating in an officially recognized Medallion
Guarantee program may provide this Medallion Guarantee.
What is "backup" withholding?
Federal law indicates that all shareowners must comply with IRS regulations
requiring the submission of a taxpayer identification number or a Form
W9 certifying that you are not subject to Backup Withholding. Unless
the transfer agent has the required information, they must withhold
31% of dividend payments and sale proceeds at the time of payment.
How can I find information on an old stock certificate, in my possession?
You may find some information about your stock from the major stock
exchanges (NYSE, AmEx, Nasdaq,). However, this information is usually
limited to delisting announcements, and will not help you determine
the value for your stock. The Transfer Agent, listed on the front of
your security, is another source of information. As long as the Transfer
Agent still represents the company, they can help you determine the
value of your stock certificate. If the transfer agent is no longer
in business, or no longer represents the company, contact the Corporation
Commission in the state where the stock was originally registered. If
the company is still in business, the state agency can tell you so,
and can probably direct you to the new Transfer Agent. However, they
will not be able to tell you the value of your stock. If you're still
stuck, try a trip to the library or look into our Resources section.
What is the difference between Registered and "Street"
share certificates?
When you purchase shares of a public company through a stockbroker,
the broker typically keeps your certificates and registers them in "street"
name. That means your stockbroker has the only record of your securities
holdings and you must do any re-registration of your certificates through
your stockbroker. If you don't like that arrangement, you can request
your stockbroker to register your shares with the corporation. The actual
certificates will then be mailed to you or kept in "safekeeping"
at your broker. A stock certificate is evidence of your ownership in
a public corporation. It is a valuable document that deserves careful
protection. If you take possession of your certificates, keep them in
a secure place such as a safety deposit box. Replacing certificates
is costly and inconvenient.
When do I receive information on annual meetings and proxy voting?
Thirty to forty-five days before the company's annual meeting, the transfer
agent or your broker will mail you an annual report with a notice of
the annual meeting and proxy statement. At the meeting, shareholders
elect directors and act on matters such as management and shareholder
proposals. If you can't attend, you can vote by proxy with the cards
included in the meeting announcement.
The transfer agent whose name is on my stock certificate has changed,
what can I do?
This often happens because of mergers and consolidations in the transfer
agent industry. Finding names of successor agents is not so easy unless
you know the business.
The name of the company printed on my stock certificate has changed,
what can I do?
Mergers and corporate name changes are very common. Finding the current
company name and the transfer agent becomes almost impossible. Finding
information about company name changes online is very difficult.
I lost my stock certificate(s), what can I do?
If your stock certificate is lost, stolen or destroyed, notify the transfer
agent immediately with the following information:
-
The owner must set forth, in an affidavit,
all the facts surrounding the loss;
-
The owner must post an indemnity bond to protect
the corporation and the transfer agent against the possibility that
the lost certificate may be presented later by an innocent purchaser
for value (the indemnity bond usually is an "open penalty"
bond in which the owner of the lost certificate usually pays a premium
for the bond, determined by the facts surrounding the lost and whether
the securities were in registered or bearer form, and the bond does
not protect the owner against losses incurred by the issuer or its
transfer agent as a result of the original lost certificate); and
-
The owner must request a new certificate before
the company receives notice that the missing certificate has been
acquired by another bona fide purchaser.
What is Escheatment or Unclaimed Property?
Every state has unclaimed property laws which declare securities, and
other assets to be abandoned after a period of inactivity of three to
five years. During this abandonment period banks, brokerage firms, mutual
funds, and other organizations are required to try to return the valuables
to their rightful owners. If they are unsuccessful, they then turn the
property over to the state's abandoned-property division or unclaimed
property office. The unclaimed property is returned to the state of
the property owner's last known address. If no address is known, it
is returned to the state in which the business holding the funds is
incorporated. The unclaimed property office then tries to find the rightful
owners, by placing advertisements in newspapers and trying to trace
the owners. Unfortunately, many states only advertise the new additions
to their files. There is no time limit on claiming your property. Abandoned
property has been reunited with its rightful owners 30, 40, and even
50 years after it was turned over to the state. Some states have unclaimed
property dating to the late 1800s. If the owner of the property is deceased,
the relatives can file for the unclaimed property. If you think there
might be unclaimed property that belongs to you, call or write to the
unclaimed property office in each state in which you or your deceased
relatives have ever lived. Here's a list of the addresses of state unclaimed
property offices . It is a good idea to check with these offices every
five years, even if you are certain that you haven't lost any property.
When do I receive my dividend payments?
Corporations that pay dividends will make payments on shares you hold
on a "record date" specified by the Board of Directors (you
must own shares on the record date to qualify for a dividend.) If you
don't receive your dividend check within three days of the payable date,
you should contact your transfer agent for a replacement.
What should I do if my dividend check is lost or stolen?
If your dividend check is missing, contact the transfer agent immediately.
After you authorize a stop payment order against the original check,
the transfer agent will issue a replacement. Obviously, the original
check is no longer valid.
How do I have dividends deposited directly to my bank?
Many companies offer direct deposit of dividends to the shareholder's
bank account. Check with the company's transfer agent to determine if
an Electronic Funds Transfer (EFT) is available.
What is Dividend Reinvestment?
Dividend Reinvestment Plans offer shareholders a convenient and simple
method for buying more shares with minimal service fees. Typically,
you reinvest all or part of your cash dividends, and you may have the
option of making additional purchases by check or automatic withdrawal
from your bank account. Participants receive periodic statements of
account for tracking share transactions and account balances.
