FAQs
The following questions are commonly asked questions which may help you in the transferring of shares.
- What is needed to transfer shares of stock?
- What is a "stock power" or "assignment form"?
- What is a medallion signature guarantee and how do I obtain one?
- What is a "registration"?
- What are the different types of registrations available?
- Where do I send the certificate for transfer?
- How can I change my address?
- How do I transfer shares to a minor who is now of age?
- How do I transfer shares from a deceased individual?
- How do I transfer shares from a deceased joint tenant?
- How to transfer shares into a trust account.
- How do I change my name or registration on my shares since I became married?
- How can I replace lost certificates?
- How can I transfer my shares through the DRS system?
- How do replace a lost or old dividend check?
- What is a W-9 form and why is it required?
- How do I sell or transfer my restricted stock certificates?
1. What is needed to transfer shares of stock?
You must submit the existing stock certificate(s) and a fully completed stock power form, endorsed by all registered owners and medallion guarantee stamp affixed. Include all book-entry share amounts if applicable. If the space provided on the form is insufficient, you may submit a letter providing the details of the transfer. The letter should state the complete name, address, and Social Security Number (SSN) or Tax Identification Number (TIN) of the individual(s) to whom the shares are to be transferred. Signatures and medallion guarantee must also be affixed to the transfer instruction letter.
2. What is a "stock power" or "assignment form"?
This single form can replace the multiple number of stock certificate assignment forms on the back or reverse side of each certificate. It can also accommodate book shares as well as certificated shares. All signatures must be Medallion Signature Guaranteed for a transfer to take place. (This form may be downloaded from our website.)
3. What is a medallion signature guarantee and how do I obtain one?
Financial institutions and brokerage firms belong to one of the three (3) available Medallion Signature Guarantee Programs. A Medallion Signature Guarantee provides the authentication of the guarantor that the endorser or person(s) signing the certificate(s) is the registered owner(s) and has the legal authority to sign the certificate(s). The guarantor must know the endorser(s) and stand behind its guarantee. This allows for the change in the "registration" of the shares or certificate(s) or book shares.
4. What is a "registration"?
The "registration" is the names and/or titles of the person(s) listed on the certificate(s) and the how shares of stock are held, such as Joint Tenants, Tenants in Common, etc. Each registration has different values in ownership and, if applicable, different estate proceedings.
5. What are the different types of registrations available?
Please see our listing below, along with examples.
(Note: Not all registrations may be available in your state of residence such as TOD.)
Joint Tenants - example – John Smith & Mary Smith JT TEN.
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).
Tenants in Common - example – John Smith & Mary Smith TEN COM.
This registration allows as appropriate portion of the assets to pass to the estate of the holder upon the holder’s death rather than to the surviving tenant.
Custodial Registration - example - John Smith Custodian Betty Smith UNIFORM GIFT TO MINORS ACT IL OR John Smith Custodian Betty Smith UNIFORM TRANSFERS TO MINORS ACT IL. (State which statutes will govern the custodianship).
This registration applies to a person who serves as custodian for a minor. A custodian is named under the Uniform Transfer to Minors Act (UTMA) or the Uniform Gift to Minors Act (UGMA). The custodian acts on behalf of the minor until the minor reaches the age of majority in their respective state of residence.
Transfer on Death (TOD) - example - John Smith TOD Betty Smith Subject to STA TOD Rules
This registration to an individual designates a beneficiary in the registration. The shareholder retains all traditional rights of stock ownership during his/her lifetime. Upon the death of the shareholder, the share ownership passes automatically to the named beneficiary. The shareholder can transfer the shares without the signature or consent of the beneficiary.
Trust Registration – example – John Smith TR UA Jan 1 95 John Smith Trust
This registration in the name of the trust is governed by a trust agreement. Trust registrations must include: the name of the trust, date of the trust agreement and the trustee(s).
6. Where do I send the certificate for transfer?
All transfers should be insured for 2% of the market value* and sent to:
IST Shareholder Services
209 W. Jackson Blvd., Suite 903
Chicago, IL 60606
All transfers should include a completed W-9 form. If a W-9 is not delivered with the transfer instructions, we will automatically send you a W-9 form approximately one (1) week after the transfer is completed.
*Important Note: Whenever you mail certificates, it is advisable to insure the certificates for 2% of the current market value. This is the charge by our surety company to obtain the surety bond, which is required to replace the certificate(s) should they be lost in the mail or by any of the other acceptable courier service you would choose.
7. How can I change my address?
Address changes can be made by completing the Change of Address Form and returning it to IST Shareholder Services. To ensure proper changes are made on your account, please complete all sections. Address changes can also be made by faxing the proper information to (312) 427-2879.
8. How do I transfer shares to a minor who is now of age?
The custodian or minor must complete a stock power assigning the shares or fill out the back of the stock certificate(s). A Medallion Signature Guarantee must be obtained for all signatures and affixed to the form/and or the certificate(s). A certified copy of the birth certificate must be presented along with all outstanding stock certificate(s). Note: Each state has different laws requiring when a minor is determined to be of age.
9. How do I transfer shares from a deceased individual?
Example - John Smith Executor for the Estate of Betty Smith
- The outstanding stock certificate(s) is to be submitted to us. If some or all of your certificates are lost, provide written notification and we will provide you with the appropriate forms.
- A certified copy of the court appointment of estate representative dated within 60 days of the request for transfer. This is issued when estate is probated.
- A stock power filled out indicating complete transfer instructions, i.e. the exact manner in which the new certificate(s) is to be registered, including complete mailing address and social security or taxpayer identification number. A Medallion Signature Guarantee must be affixed to the stock power form for all signatures.
- A notarized, completed Affidavit of Domicile
- An Inheritance Tax Waiver (consent to transfer) from the state where the deceased shareholder lived. To determine if this form is required in your circumstance, you may contact that state’s Revenue or Tax Department.
- In the event we are holding any uncertificated shares for the subject account in book entry form and the transfer is applicable to such shares, this should be stipulated in your transfer instructions.
Note: Whenever mailing certificates, we recommend you send in by certified or registered mail and insure them for 2% of their current market value. This will cover the amount charged by surety companies to obtain a surety bond required to replace the certificate(s) should they become lost in transit.
10. How do I transfer shares from a deceased joint tenant?
Example - John Smith and Betty Smith JT TEN to Betty Smith
- The outstanding stock certificate(s) is to be submitted to us. If some or all of your certificates are lost, provide written notification and we will provide you with the appropriate forms to replace those shares.
- An original certified copy of the death certificate of the deceased owner. (This will be returned to you).
- A notarized, completed Affidavit of Domicile
- In the event we are holding any uncertificated shares for the subject account in book entry form and the transfer is applicable to such shares, this should be stipulated in your transfer instructions.
The new certificate(s) registration will be issued to the surviving joint tenant. If the shares are to be issued to an additional person, a stock power is required. It should indicate complete transfer instructions, i.e. the exact manner in which the new certificate(s) is to be registered, including complete mailing address and Social Security Number (SSN) or Taxpayer Identification Number (TIN). A Medallion Signature Guarantee must be obtained for all signatures and affixed to the form.
Note: Whenever mailing certificates, we recommend you send in by certified or registered mail and insure them for 2% of their current market value. This will cover the amount charged by surety companies to obtain a surety bond required to replace the certificate(s) should they become lost in transit.
11. How to transfer shares into a trust account.
Example - John Smith Tr UA Jan 10 20 John Smith Trust
- The outstanding stock certificate(s) is to be submitted to us. If some or all of your certificates are lost, provide written notification and we will provide you with the appropriate forms.
- A stock power filled out indicating complete transfer instructions, i.e. the exact manner in which the new certificate(s) is to be registered, including complete mailing address and social security or taxpayer identification number. A Medallion Signature Guarantee must be affixed to the stock power form for all signatures.
- In the event we are holding any uncertificated shares for the subject account in book entry form and the transfer in applicable to such shares, this should be stipulated in your transfer instructions.
Note: Whenever mailing certificates, we recommend you send in by certified or registered mail and insure them for 2% of their current market value. This will cover the amount charged by surety companies to obtain a surety bond required to replace the certificate(s) should they become lost in transit.
12. How do I change my name or registration on my shares since I became married?
Example: From Betty Smith To Betty Jones
Complete the stock power, endorsing the certificate as follows: "Betty Jones, now known as Betty Smith." A Medallion Signature Guarantee must be obtained for the endorsement.
13. How can I replace lost certificates?
If your stock certificate(s) is lost, stolen or destroyed, all owners must notify us in writing indicating the name of the corporation, the certificate numbers(s), and the name of the registered holder(s). IST Shareholder Services will then send you the necessary documentation to obtain replacement certificates. A premium notice will be included covering the cost of a surety bond at the rate of 2% of the current market value and an affidavit preparation handling fee.
14. How can I transfer my shares through the DRS system?
The Direct Registration System, (DRS) is stock registered in your own name on the books of the company in an electronic form (known as “safekeeping” of your shares. There is no outstanding physical stock certificate issued. DRS will allow you to electronically move the shareholder’s position between the broker’s street side and the transfer agents own records or vice versa. The issuer must be enrolled in DRS participation program for this transaction. Only free trading and restriction free/legend free shares may be processed through DRS.
You must contact your broker to have them initiate this transaction. They will need the following information:
- Broker may/ will require a recent statement of yours.
- Registration presented to us by the broker must match exactly, including the Social Security Number/TIN number and your account number on file with us.
- Written notification is required by the shareholder if shares are held in a plan position requesting us to move the shares to book position for the possible DRS transaction moving shares to the street side.
- IST Shareholder Services' DTC Participant number, 7852.
- The number of whole shares to be transmitted; fractions are not transferable.
The transaction will be processed through the Depository Trust Company’s electronic system.
15. How do replace a lost or old dividend check?
Dividend checks are usually valid for a six month period from the payable/issuance date.
- If you have the stale dated check(s) in your possession, send the check(s) back along with a written request to replace it and we will process accordingly.
- If you lost a check, we need to be notified in writing with a request for a replacement check. All owners must sign the request if jointly held. Include the corporation name, your account number, and if you know, what dividend check(s) is missing and we will place stops on those checks and reissue a replacement check(s).
16. What is a W-9 form and why is it required?
A W-9 form certifies the Taxpayer Identification Number (TIN) also known as a Social Security Number (SSN) or Employer Identification Number (EIN) listed on an account. A W-9 is required each time a new account registration is established. The IRS rule is to withhold a portion of any earnings at the current year’s withholding rate on any accounts that have not been certified by submitting a properly completed W-9 form.
Holders who are not U.S. taxpayers/U.S. Citizens will need to complete a W-8 form which is used in place of a W-9. Forms W-9 and a W-8 (usually a W8-BEN for individuals) are available Forms section.
17. How do I sell or transfer my restricted stock certificates?
To sell your restricted or controlled securities, you must follow the conditions set forth in S.E.C.Rule 144. Some conditions are required as follows:
- The holding period. Before you can sell on the open market you must hold them for a certain period of time. If the company that issued the securities is subject to the reporting requirements of the Securities Exchange Act of 1934, you must hold the securities for at least six months. If the issuer is not subject to the reporting requirements, then you must hold the securities for at least one year. This begins with the securities when they were bought and fully paid for. In the case of stock options, such as one an employee receives, the holding period begins the date the option is exercised and not the date it was granted.
- Adequate and current information about the issuer of the securities is required before a sale can be made. This means the issuer has complied with the periodic reporting requirements of the Exchange Act.
- If you are an affiliate, the number of equity securities you may sell during the three month period cannot exceed the greater of 1% of the outstanding shares of the same class being sold, or if the class is listed on a stock exchange or quoted on Nasdaq, the greater of 1% or the average reported weekly trading volume during the four weeks preceding the filing of a notice of sale on Form 144. Over-the-counter stocks, including those quoted on the OTC Bulletin Board and Pink Sheets can only be sold using the 1% measurement.
- If you are not an affiliate of the issuer and have held the securities for two years, you can sell them with the Rule 144 requirement as follows:
- After a one year holding period, many of the conditions of 144 are relieved by Rule 144B and the restricted legend may be permanently removed.
Certificates should be sent to IST Shareholder Services with the completed paperwork. We will contact legal counsel of the issuer for approval.