Selling physical stock certificates takes a few more steps than selling shares held electronically, but the sequence is predictable. You confirm the shares still have value, locate the company’s transfer agent, sign a stock power with a medallion signature guarantee, and mail everything through a secure carrier. From the day you drop the envelope to the day payment arrives, most sales finish in one to three weeks.
Confirm the Shares Still Have Value
Before mailing anything, check that the company on the certificate still exists and that the shares are worth something today. Companies merge, rename themselves, split their stock, restructure in bankruptcy, and sometimes disappear. The share price printed on the certificate, if any is printed at all, tells you nothing about current market value.
Start with the transfer agent printed on the certificate. If that agent no longer exists, contact the state agency that handles incorporations in the state where the company was originally incorporated, or ask a broker to research the history. Certificates with no investment value sometimes still have worth as collectibles.1U.S. Securities and Exchange Commission. Old Stock and Bond Certificates
Choose Your Route: Transfer Agent or Broker
Every publicly traded company appoints a transfer agent to maintain shareholder records, process ownership changes, cancel and issue certificates, and distribute dividends.2U.S. Securities and Exchange Commission. Transfer Agents The agent’s name is usually printed on the face of the certificate. If corporate restructuring has changed the agent, the company’s investor relations department can point you to the current one. You will also want the CUSIP number from the certificate, a nine-character code the agent uses to confirm the exact class of stock.3U.S. Securities and Exchange Commission. CUSIP Number
If you would rather not deal with the transfer agent, many brokerage firms will accept physical certificates, deposit them into an electronic account, and sell them for you. Not every broker offers this, and those that do may charge a processing fee.4U.S. Securities and Exchange Commission. Investor Bulletin: Holding Your Securities Call before mailing to confirm they accept paper certificates and to get their specific submission instructions.
Complete the Stock Power and Medallion Guarantee
Two documents are required to authorize the transfer. Without both, the transfer agent will reject the submission.
Stock Power Form
A stock power authorizes the transfer of ownership. It works as a limited power of attorney that lets the transfer agent or broker move the shares out of your name. The form asks for the exact corporate name shown on the certificate, the certificate number, and the number of shares. You can usually download it from the transfer agent’s website or pick one up at a brokerage office.
Sign the stock power exactly as your name appears on the face of the certificate. If the certificate reads “John A. Smith” and you sign “John Smith” or “J. A. Smith,” expect a rejection. Small differences in middle initials or suffixes cause real delays.
Medallion Signature Guarantee
A medallion signature guarantee is a specialized stamp that verifies your identity and the authenticity of your signature. Transfer agents require it because the institution providing the stamp takes on financial responsibility if the signature turns out to be forged.5U.S. Securities and Exchange Commission. Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities A standard notarization is not a substitute; notarization confirms only that you signed the document in front of the notary.
You can get a medallion guarantee from a bank, credit union, or broker-dealer that participates 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).5U.S. Securities and Exchange Commission. Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities Bring a valid government-issued photo ID. Expect a service fee. Some institutions provide the guarantee only to existing account holders, so call ahead.
Mail the Certificates Safely
Once your paperwork is signed and stamped, package everything with a transmittal letter that includes your name, mailing address, phone number, Social Security number for tax reporting, and clear instructions about what you want done, whether that is a sale, a transfer to a brokerage account, or a name change.
Physical certificates are valuable documents, and losing one in the mail triggers a costly replacement. Use USPS Registered Mail or an insured overnight courier. Registered Mail carries tracking, proof of delivery, and insurance coverage up to $50,000 based on the value of the item.6United States Postal Service. Adding Extra Services Many transfer agents recommend sending the unsigned certificate and the signed stock power in separate envelopes; if one goes missing, the other is useless without its match.
Once the transfer agent receives the package, you should get a confirmation by email or mail that review has started.
Timeline and Payment
The transfer agent authenticates the certificate, checks the signature guarantee, and reviews the supporting documents. That review generally takes several business days depending on volume. Once everything clears, the agent executes the sale on the open market.
After the trade, settlement follows the standard T+1 cycle, meaning the transaction finalizes one business day after the trade date. During that period the buyer delivers payment and you deliver the security.7U.S. Securities and Exchange Commission. Shortening the Securities Transaction Settlement Cycle The one-business-day standard took effect on May 28, 2024, replacing the previous T+2 timeline.8FINRA. Understanding Settlement Cycles: What Does T+1 Mean for You
Payment arrives after settlement clears. A mailed check adds time; direct deposit reaches your bank faster. The transfer agent deducts its service fees from the proceeds and sends a final statement showing the sale price, fees, and other details you will need at tax time.
If the Certificate Is Lost or Damaged
If you cannot find the certificate, contact the transfer agent right away and request a “stop transfer” to keep anyone else from moving those shares out of your name. A broker can also help start the process.9SEC.gov. Investor Bulletin: Lost and Stolen Securities
To get a replacement, the issuer will usually require you to buy an indemnity bond. The bond protects the issuer and the transfer agent if the original certificate ever surfaces and an innocent buyer tries to claim the shares. It generally costs two to three percent of the current market value of the missing shares.9SEC.gov. Investor Bulletin: Lost and Stolen Securities On a $50,000 holding, that is $1,000 to $1,500, on top of whatever replacement fee the transfer agent charges. Once the replacement is issued, you can sell using the steps above.
Selling Inherited Certificates
Inherited certificates need extra documentation. Requirements vary by transfer agent and by whether the estate went through probate, but you should expect to provide:
- A certified death certificate, not a photocopy.
- Letters testamentary or letters of administration from the probate court, proving your legal authority to act for the estate.
- An affidavit of domicile, a notarized statement of the deceased person’s state of residence at the time of death, used to determine taxing authority.
- A stock power signed by the executor or administrator with a medallion signature guarantee.
Contact the transfer agent before submitting anything. Each agent has its own forms, and incomplete paperwork causes significant delays.
Stepped-Up Basis
When you inherit stock, your cost basis is generally “stepped up” to the fair market value of the shares on the date the original owner died, not the price they originally paid. That rule can sharply reduce or wipe out capital gains tax on the sale.10Office of the Law Revision Counsel. 26 U.S. Code 1014 – Basis of Property Acquired From a Decedent If a parent bought shares for $5,000 decades ago and they were worth $50,000 at the date of death, your basis is $50,000. Sell for $51,000, and you owe capital gains tax only on the $1,000 gain.
Taxes After the Sale
The transfer agent or broker will report your proceeds to the IRS on Form 1099-B. Many paper certificates qualify as “noncovered securities” because they were purchased before modern cost-basis tracking rules took effect, and for noncovered securities the broker is not required to report your cost basis to the IRS.11Internal Revenue Service. Instructions for Form 1099-B You are responsible for figuring out and reporting the correct basis yourself.
Cost basis is generally what you or the original purchaser paid for the shares, plus any commissions or transfer fees at the time of purchase. For very old certificates, that figure can be hard to reconstruct. Old brokerage statements, purchase confirmations, corporate records, and historical stock price data all help.
You report the sale on Form 8949, which feeds into Schedule D. For noncovered securities where the broker did not report basis, use Part II for long-term holdings and check box E or F depending on whether you received a 1099-B. Enter the correct cost basis yourself in column (e).12Internal Revenue Service. Instructions for Form 8949
Certificates held for more than a year qualify for long-term capital gains rates. For 2026, those rates are 0%, 15%, or 20% depending on taxable income. Single filers pay 0% on long-term gains up to $49,450 in taxable income, 15% up to $545,500, and 20% above that. Joint filers pay 0% up to $98,900 and 15% up to $613,700.13Internal Revenue Service. Revenue Procedure 2025-32 Keep the final statement from your transfer agent alongside your 1099-B; you may need both to complete the return accurately.