Stock Transfer
Frequently Asked Questions
What is a medallion signature guarantee?
The Uniform Commercial Code (UCC) entitles transfer agents and issuers to receive signature guarantees to protect them against fraudulent and unauthorized transfers. Securities and Exchange Commission (SEC) regulations define the financial institutions that are eligible to provide such signature guarantees, e.g., commercial banks, brokers, credit unions, savings and loan institution. Signature Guarantee Programs have been developed and eligible financial institutions which subscribe to such programs are issued "Medallion Guarantee Stamps". Transfer agents are obligated to ensure that such stamps appear on the transfer documents and are entitled to refuse a transfer of shares if a signature is not guaranteed with a stamp. A notary stamp is not acceptable when transferring the ownership of stock.
What is a "registered" shareholder?
The registered owner of shares is the shareholder of record on the books of the corporation, generally kept by the transfer agent. The registered owner may be an individual, a trust, a broker, etc. Registered owners receive communications, proxies, dividends, etc. directly from the corporation through the transfer agent. A registered owner differs from a "street name" owner.
What are "street name shares"?
Securities held in a broker account and registered in the name of the broker or other institution are referred to as being "in street name." If you keep your stock with your broker in a broker account, you are a "street name" holder and are not directly registered on the company’s recordfile maintained by the transfer agent. Company mailings, including dividends, will reach you through your broker. Should you wish to become a registered holder, request your broker to have your shares issued in certificate form, registered in your name.
How do I obtain cost basis of my shares for tax reporting?
You must consult your tax advisor regarding your tax basis. As the transfer agent, we never buy and sell shares of stock nor do we maintain the historical prices. Please be sure to keep all records you receive from your broker when you obtain shares. If you acquired you’re your shares via an arrangement with your employer, please contact your HR department.
How can I replace my lost certificates?
The first step is to notify
us in writing.
Via fax to 610-649-7302 Attention Lost Securities Dept
OR
Via letter to:
Lost Securities Department
StockTrans, Inc
44 W Lancaster Avenue
Ardmore, PA 19003
StockTrans®, Inc will then send you the documents necessary to obtain replacement
certificates along with instructions to complete them. If your certificate
was never received within the last 12 months and was shipped directly to you
from our location, please contact us as we may be able to replace your certificate
at no charge.
IMPORTANT: You must be able to provide the name of the security, the certificate
number(s), the name of the registered owner(s), and the number of shares in
all communications. Also please indicate if the registered stockholder is
deceased so the appropriate documents may be forwarded to you. If you do not
have this information, you should call our Lost Securities Department at 610-649-7300.
How can I sell my shares that are held in certificate form?
You must take your certificate to a securities broker to sell the shares. There are many options when it comes to securities brokers, so make sure you are choosing one that will best suit your needs. StockTrans®, Inc can not recommend any brokers.
How can I obtain a copy of my 1099?
A copy of a 1099 issued by StockTrans®, Inc on behalf of one of our issuers may be obtained by calling StockTrans®, Inc at 610-649-7300. You should be prepared to provide your Social Security number and the name of the issue.
How can I get my stock transferred?
If you hold certificates you wish to transfer (be certain StockTrans®, Inc is the agent - our name will usually appear on the certificate), you must mail your certificates to StockTrans®, Inc . at the above address. 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, instructions indicating how you wish the shares transferred should also be included. These instructions should provide the name, address and social security number for each transferee and should indicate the number of shares to be transferred. In some cases additional documents will be required to complete the transfer. Please see other sections of this document to obtain additional information on transfer requirements and to download selected forms.
How should shares for transfer be mailed to StockTrans®, Inc?
We recommend that all certificates be sent by registered mail, return receipt requested. It is suggested that the shipment be insured for 2% of the current value of the shares. In the event of loss, a surety bond of two percent will be required to replace the certificates. A surety bond is typically obtained by paying a premium to the surety company equal to two percent of the current value of the shares being replaced.
What are the more common types of security registrations?
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).Joint Registration - Several types of Joint Registration exist.
Joint Tenants With Rights Of Survivorship - 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
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
Custodial Registration - There are several custodial registrations possible. 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").
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.