To sell physical stock certificates, you endorse them with a separate document called a Stock Power, get your signature validated with a Medallion Signature Guarantee at a participating bank, and send the package by USPS Registered Mail to either the company’s transfer agent or a brokerage firm that accepts paper certificates. The agent or broker verifies your ownership, converts the shares to electronic form, and either executes the sale directly or credits the shares to your brokerage account so you can sell them yourself. Start to finish, expect two to four weeks.
Find the Transfer Agent
Look at the certificate first. The transfer agent’s name is usually printed on the front, often near the bottom margin. Common agents include Computershare, Equiniti (formerly American Stock Transfer), and Broadridge. If the print is worn or the company name doesn’t match anything current, use the CUSIP number on the certificate. That nine-character code uniquely identifies the issuer and share class, and a brokerage or financial database can trace it back to a current agent.1Investor.gov U.S. Securities and Exchange Commission. CUSIP Number
You have two paths. If the company runs a Direct Stock Purchase Plan or Dividend Reinvestment Plan, you can sell through the transfer agent, which will use a broker-dealer behind the scenes to execute the trade.2Financial Industry Regulatory Authority. Know the Facts About Direct Registered Shares Or you can deposit the certificate into a brokerage account at a firm like Fidelity, Schwab, or Vanguard and sell from there. Either way, call before you send anything. Ask for the current mailing address, any intake forms, and whether they accept physical certificates at all. Some online-only brokers don’t.
When the Company Has Merged or Changed Names
Shares can retain value even when the name on the paper no longer exists. Search the company name plus “merger” or “acquired by.” Investor relations pages for the successor company usually spell out the conversion ratio, meaning how many shares of the new company you received for each old share.
If that turns up nothing, check with the secretary of state where the company was incorporated. Dissolution or merger records can point you to a successor entity. Transfer agents are also required to notify depositories when they stop servicing an issue, and that notice must include the successor agent’s contact information.3Federal Deposit Insurance Corporation. Registered Transfer Agent Examination Manual If the company was liquidated in bankruptcy with nothing left for shareholders, the certificate has only collectible value.
Complete the Stock Power
A Stock Power is a standalone document that transfers your ownership without your having to write on the certificate itself. Fill in the corporation’s name, the number of shares, and the certificate number. Your signature must match the name on the face of the certificate exactly. If your name has changed through marriage or a court order, include supporting documentation like a marriage certificate or name-change decree.
The form has a field for an “attorney-in-fact,” the person or institution authorized to complete the transfer. Transfer agents typically want this blank so they can fill it in during processing. Don’t date the form unless the agent tells you to; a dated Stock Power can be rejected as stale. Any mistake here creates what the industry calls a “bad delivery,” bouncing the paperwork back to you and adding weeks.
Get a Medallion Signature Guarantee
A notary stamp will not work. Transfer agents require a Medallion Signature Guarantee, a stamp under which the guaranteeing bank puts its own money at risk. If your signature turns out to be forged, the guarantor absorbs the loss.4U.S. Securities and Exchange Commission. Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities
Guarantors must participate in one of three recognized programs: the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP), or the New York Stock Exchange Medallion Signature Program (MSP).4U.S. Securities and Exchange Commission. Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities Each stamp carries a prefix letter that sets the maximum transaction value the institution can guarantee. An “A” prefix covers up to $1 million; a “Y” prefix covers up to $5 million. If the current market value of your shares exceeds the institution’s limit, you’ll need a bank with a higher-tier stamp.
You’ll almost always need to appear in person at a bank where you already have an account. Bring a valid photo ID, the certificate, and the completed Stock Power. The officer will verify your identity, confirm the shares’ market value falls within the stamp limit, and apply the guarantee. Not every institution provides medallions to non-customers, so call first.
Mail the Certificates Safely
Physical stock certificates are negotiable instruments. Anyone in possession of a properly endorsed certificate could try to claim the shares. Never use regular mail. USPS Registered Mail is the standard because it creates a chain-of-custody record at every handling point and includes insurance.
Registered Mail covers declared values up to $50,000, and you must declare the full value when you present the package.5USPS. Registered Mail – The Basics If your shares are worth more than that, postal insurance alone won’t make you whole if the package disappears. In that case, use a private courier with higher coverage, or ask the transfer agent whether they accept deposits through the Depository Trust Company’s DWAC (Deposit/Withdrawal at Custodian) system, which avoids mailing entirely.
Before sealing the envelope, copy everything: front and back of each certificate, the completed Stock Power, and the medallion-stamped pages. Those copies are your starting point if anything goes wrong in transit.
Verification, Settlement, and Payment
Once the package arrives, the transfer agent or broker verifies the medallion, checks that the certificate hasn’t been reported lost or stolen, and matches the Stock Power against the certificate. Review usually takes a few business days, longer during busy periods or when something on the paperwork doesn’t line up.
If you’re depositing with a broker, the broker submits the certificate through the Depository Trust Company for conversion to electronic book-entry form.6Depository Trust and Clearing Corporation. Deposits Service Guide Once the deposit clears, the shares appear in your account and you sell them like any other stock. If you’re selling through the transfer agent, they execute the trade after verification.
Trades now settle on a T+1 cycle, meaning funds are due one business day after the trade date. The SEC moved to this standard on May 28, 2024.7U.S. Securities and Exchange Commission. Shortening the Securities Transaction Settlement Cycle – A Small Entity Compliance Guide Payment comes either as a check to your address of record or as an ACH transfer to a linked bank account. ACH typically lands within one to two business days after settlement; checks can take five to ten days.
Fees to Expect
Several charges can reduce your proceeds, and they vary by path:
- Certificate deposit fee. Brokerages often charge to accept physical certificates. Vanguard, for example, charges $100 per CUSIP.8Vanguard. Brokerage Services Commission and Fee Schedules
- Trading commission. Many brokers offer free online trades but charge $25 or more for broker-assisted transactions.8Vanguard. Brokerage Services Commission and Fee Schedules
- Transfer agent sale fee. If you sell directly through the agent, expect a flat processing fee deducted from your proceeds; amounts vary by agent and transaction size.
- Shipping and insurance. Registered Mail fees depend on declared value and weight, and you pay them upfront.
Ask for a full fee schedule before committing. On smaller holdings, the choice between selling through the transfer agent and depositing with a broker can meaningfully change what you net.
Taxes and Cost Basis
The IRS treats a certificated stock sale the same as any other stock sale. Your tax bill depends on how long you held the shares and your cost basis, meaning what you originally paid, adjusted for splits and reinvested dividends. Shares held longer than one year qualify for long-term capital gains rates, which for 2026 are 0%, 15%, or 20% depending on taxable income. Shares held one year or less are taxed at ordinary income rates.
The Cost Basis Problem With Old Shares
Most physical certificates were purchased before 2011, which makes them “noncovered securities” under IRS rules. Your broker will report the sale proceeds on Form 1099-B but is allowed to leave the cost basis blank.9Internal Revenue Service. 2026 Instructions for Form 1099-B Figuring out what you paid falls on you.
Dig through old records: purchase confirmations, brokerage statements, canceled checks. If the stock has split since you bought in, adjust both the share count and the per-share price. When records are gone, you may need to reconstruct the price from the stock’s historical trading range around your approximate purchase date. Report the basis on Form 8949, using Box B for short-term or Box E for long-term transactions where the basis wasn’t reported to the IRS. Enter your calculated basis in column (e) and put zero in the adjustment column (g).10Internal Revenue Service. Instructions for Form 8949
Inherited Shares
If you inherited the shares, your cost basis is generally the fair market value on the date the original owner died, not what they paid decades earlier. This stepped-up basis can dramatically reduce the tax owed on shares that have appreciated significantly.11Internal Revenue Service. Publication 551 – Basis of Assets If the estate had to file a federal estate tax return (Form 706), you should have received a Schedule A from Form 8971 showing the reported value. You’re generally required to use that value as your basis.
One trap: if you gave appreciated stock to someone who died within one year and left it back to you, the stepped-up basis doesn’t apply. Your basis reverts to whatever the decedent’s adjusted basis was immediately before death.11Internal Revenue Service. Publication 551 – Basis of Assets In community property states, both halves of community property get a stepped-up basis when one spouse dies, which is an advantage people in common-law states don’t receive.
If Your Certificate Is Lost or Damaged
A missing certificate doesn’t mean the shares are gone. The transfer agent still has you on its books. But replacement adds time and cost.
Contact the agent immediately and report the certificate as lost. You’ll typically complete an affidavit of loss and purchase a surety bond, sometimes called an indemnity bond, which protects the company and the agent if the original later surfaces in someone else’s hands. Bond premiums generally run 1% to 3% of the current market value, with better-credit applicants paying less.
Federal rules require the institution to report the loss, and that reporting creates a record that helps stop anyone else from cashing in the original.12eCFR. 17 CFR 240.17f-1 – Requirements for Reporting and Inquiry With Respect to Missing, Lost, Counterfeit or Stolen Securities Once the bond is in place and the replacement is processed, you can proceed as normal. Expect two to six weeks added to the timeline. On smaller holdings, the bond premium can take a noticeable bite, so factor it in before deciding whether the sale is worthwhile.
Selling Shares From an Estate
If you’re the executor or personal representative of an estate that holds certificated shares, you’ll need documentation beyond the standard Stock Power and medallion:
- Certified death certificate. An original or certified copy, not a photocopy.
- Letters testamentary or letters of administration. Court-issued documents proving your legal authority to act for the estate. Letters testamentary apply when there’s a will; letters of administration apply when there isn’t.
- Affidavit of domicile. A sworn statement establishing the deceased person’s state of residence at death, used by the agent to determine governing law and guard against claims from other states.
Some agents also want a copy of the will, a state tax waiver, or a proprietary transfer form. Call the agent before mailing anything and get their specific checklist. Getting it right the first time saves weeks.
Because the shares are still registered in the deceased person’s name, you cannot simply sign the Stock Power yourself. The agent has to re-register the shares based on your letters testamentary before an executor can authorize a sale or distribution. On any subsequent sale, remember the stepped-up basis rule, which can substantially reduce capital gains tax on inherited shares.11Internal Revenue Service. Publication 551 – Basis of Assets