In 2022, How to Transfer Stock Shares

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A stockbroker or transfer agent can issue stock share certificates in the name(s) of the owner(s) or hold them in book form. Exact compliance with the processes is necessary to achieve a successful stock transfer. Each transfer agent will have its own set of rules, but the fundamentals and order of the actions will remain the same.

Find out if the transfer agent mentioned on the stock certificate accepts a transfer request on the back of the stock certificate or if a separate transfer of ownership form is required.

Each current owner must sign the stock certificate or transfer form, which must be witnessed by a “medallion signature guarantee.” A medallion signature guarantee is available from a stockbroker or bank. Each signature must be made in the presence of the person who is authorised to sign the medallion.

List each new owner’s name, address, and social security or taxpayer ID number on the transfer form or the back of the stock certificate, as requested by the transfer agent.

Make copies of everything for your records.

Send the stock certificate and transfer form to the transfer agent’s address, using certified or registered mail if necessary. The mailing should be insured for 2% of the stock share value.

New share certificates will be mailed to the new owner(s) at the address(es) listed in the transfer papers.

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A transferring owner’s signature must exactly match the name listed on the stock certificate. If the transfer involves the death of an owner, a name change, a non-US owner, or a minor owner reaching the age of majority, the transfer agent can provide extra instructions. If you are unsure about signing the stock certificate, an unsigned stock certificate can be sent with a letter of instruction containing the signatures and guarantees.

A notary public signature certification is not the same as a medallion signature guarantee and cannot be used to transfer stock ownership. The cost of replacing a lost or destroyed stock certificate is typically 2% of the stock share value, hence the insurance recommended when shipping stock certificates.