What to Do with Old Stock Certificates

Finding forgotten stock certificates tucked away can be a surprising and potentially valuable discovery. 

These tangible documents represent ownership in a company, and while most stocks are now held electronically, old certificates can still hold worth, both financially and sentimentally. 

This guide will walk you through the steps of exploring their potential value and navigating your options.

Key Takeaways – What to Do with Old Stock Certificates

• Identify and Research the Certificate – Examine the company name, certificate number, shares, and issue date. Research its history. Check for mergers, name changes, or closures using SEC filings and corporate history resources.
• Verify the Company’s Status – For publicly traded companies, find the current value via financial sites. If defunct, check state unclaimed property offices for potential payouts.
• Contact the Transfer Agent – The transfer agent or successor company can confirm share details, stock conversions, and guide you on redeeming or transferring shares.
• Explore Value Beyond Stocks – Old certificates may hold collector value (historical significance, ornate design) or sentimental value (e.g., framing for preservation).

Identifying the Certificate and the Company: The First Steps

Start with a close examination of the certificate itself.

Here’s what you’ll be looking for:

Company Name

This is the most important piece of information.

Be sure you have the exact legal name of the company when it issued the certificate.

Mergers, name changes, and company closures can complicate matters, so historical context is key.

Certificate Number

This unique identifier helps track the specific certificate within the company’s records.

Number of Shares

This represents the number of shares the certificate embodies, a key factor in determining potential value.

Issue Date

The date of issuance provides context for the company’s history and might be helpful in tracing mergers or acquisitions.

Transfer Agent

The transfer agent is a trusted third party responsible for shareholder records and stock transfers.

Their contact information may be printed on the certificate.

A transfer agent is typically listed with their full legal name, often including “Trust Company,” “Bank,” or “Corporation” in their title.

For example, a transfer agent might be listed as “Computershare Trust Company, N.A.” or “American Stock Transfer & Trust Company, LLC.”

If the transfer agent’s information isn’t on an old stock certificate or appears outdated, you can often find current contact information by searching the company’s investor relations page online or contacting the Securities and Exchange Commission (SEC) or relevant agency.

Once you have this information, you’re ready to look into the company’s current status.

Researching the Company’s Current Status

Understanding the company’s current status is critical to unlocking the potential value of your certificate.

Here’s how to proceed:

Publicly Traded Companies

If the company is still actively traded, a search engine or sites like Yahoo Finance, Google Finance, or Bloomberg can quickly disclose current values and stock ticker symbols.

This allows you to readily calculate the market value of your shares.

Merged or Acquired Companies

Many companies undergo mergers or acquisitions.

If this has happened, your original shares may have been converted into shares of the acquiring company or cash.

Figuring out this lineage can be done by searching SEC/regulatory filings or searching its corporate history.

Defunct Companies

Unfortunately, if the company has declared bankruptcy and ceased operations, the stock certificates are generally worthless.

However, there’s a slight chance of unclaimed assets being liquidated and distributed to shareholders.

Checking with state unclaimed property offices is a worthwhile step in that case.

Name Changes

Companies sometimes rebrand and adopt new names.

If you suspect this might be the case, online searches combining the original name with terms like “name change” or “corporate history” can unearth clues.

Contacting the Transfer Agent or Successor Company: Connecting with the Present

If the company still exists or was involved in a merger, reaching out to the transfer agent or the successor company is the next step.

The transfer agent can confirm the number of shares represented by the certificate, provide information on any stock splits or dividends, and guide you through the process of redeeming or transferring the shares.

Determining the Value and Options for Old Stock Certificates: Uncovering Potential

Once you’ve gathered information about the company’s history and current status, you can begin to understand the value of your certificate and explore your options.

Market Value for Publicly Traded Stocks

If the company is still publicly traded, calculating the market value is straightforward.

Simply multiply the number of shares represented by the certificate by the current stock price.

This will give you a real-time snapshot of its financial worth.

Value for Merged or Acquired Companies

If the company has been involved in a merger or acquisition, the process of determining value becomes more complex. 

The transfer agent or successor company can provide details on how the original shares were converted and guide you through the process of exchanging them for shares of the successor company or receiving any entitled cash payments.

Historical Value for Collectors

Even if the stock is worthless from an investment perspective, old stock certificates can hold value for collectors.

Several factors contribute to their collectibility:

• historical significance (connection to a notable event or company),
• ornate designs or artwork on the certificate itself, and
• the overall demand in niche markets for old documents (known as scripophily)

Online auction sites like eBay, dedicated platforms like Heritage Auctions, and specialty websites like Scripophily.com are resources to check out for assessing collectible value.

Sentimental Value

Beyond monetary worth, many old stock certificates hold sentimental value. 

They can represent a connection to family history, a past investment, or a bygone era. 

Framing and displaying these certificates can be a meaningful way to preserve these memories and create unique conversation pieces.

Understanding the various forms of value associated with your certificate allows you to make informed decisions about its future.

Redeeming or Selling Your Shares: Taking Action

If your research reveals that the shares still hold financial value, you can proceed with redeeming or selling them.

Working with the Transfer Agent

The transfer agent will guide you through the necessary paperwork and procedures for transferring the shares into your name or facilitating their sale.

This typically involves providing proof of ownership, such as a copy of your identification and the original stock certificate, and completing a stock power form.

Using a Brokerage Firm

If you intend to sell the shares on the open market, you’ll need to establish an account with a brokerage firm.

The brokerage firm will then act as your agent in executing the sale.

They can also assist with any necessary paperwork or processes.

Understanding Potential Fees

Be aware of potential fees associated with transferring, redeeming, or selling your shares.

These fees can vary depending on the specific transfer agent, the brokerage firm you choose, and the complexity of the transaction.

Always inquire about potential costs upfront to avoid surprises.

Conclusion

With these resources and understanding the steps outlined in this guide, you can unlock the potential value of old stock certificates, both financial and sentimental. 

Whether you discover a hidden financial treasure or simply connect with a piece of history, the journey can be a rewarding one.