A paper stock certificate has monetary value equal to the number of shares you own in the issuing company. When you possess an account with a brokerage firm, you can deposit stock certificates into the brokerage account. With a simple endorsement and after depositing the stock certificate in your account, the funds will have electronic value, which makes them safe from loss or theft.
1. Contact the brokerage firm for specific instructions for depositing the stock certificate. Ask for special endorsement instructions, if applicable. Get the mailing address for the brokerage firm for mailing the stock certificate.
2. Examine the names on the front of the stock certificate. All people listed on the front of the stock certificate must endorse the back of the stock certificate to deposit it into the brokerage account. Endorse the back of the stock certificate. Each signature must match the each name on the front of the certificate precisely.
3. Write the current date with each endorsement.
4. Write your brokerage account number on the front of the stock certificate. Write your social security number on the front of the certificate also.
5. Find the paragraph that mentions an appointed “attorney to transfer” on the back of the stock certificate with a blank for filling in a name. Enter the name of the brokerage firm on this line.
6. Place the stock certificate into an envelope and seal it. Mail the certificate to the brokerage firm using certified mail.
7. Watch your brokerage account to see when the stock certificate arrives and credits in your brokerage account. The certificate should credit to your account within one to two weeks.
- The name of the brokerage account holder must match the name on the front of the stock certificate to deposit the certificate.
- Consider purchasing insurance for the certified mail envelope to protect against loss or theft.
- Comstock/Comstock/Getty Images