Selling a Share Certificate

TheReefGeek · #1 03-21-2006, 07:00 PM

I have only ever done on-line trading without share certificates.

But now I have one, and what is the fastest way to sell it? I have called a couple places and they all need 1-2 business days to send it down to their head office, then up to 5 business days to verify the certificate!!!

Is there a faster way, or a faster broker that anybody knows of? I need to sell this ASAP as the price is high right now, but it is a very volitile stock.

Thanks!

midgetwaiter · #2 03-24-2006, 08:02 PM

No there really isn't a faster way AFAIK. In an online transaction your broker is holding your certificates for you and your buyer (probably the buyer's broker) trusts your broker.

Bogus stock certs was a real big problem years ago and that is where these policies come from.

TheReefGeek · #3 03-24-2006, 08:04 PM

Ya I called around and nobody could do it very fast for me. Hopefully the stock price doesn't plumit in the meantime while I wait!

zulu_principle · #4 03-24-2006, 10:00 PM

Short the stock against delivery, you will lock in the price and then only have liability if the share cert is fradulent.

Wendell

TheReefGeek · #5 03-24-2006, 10:07 PM

Interesting. I have never shorted a stock before, but I do know the general idea.

So I would sell "borrowed" shares right now at the current price, then I would have to buy shares in the future, but because my certificate will clear in the future I will just use those, so I don't have any risk really do I? This sounds too good to be true?

midgetwaiter · #6 03-25-2006, 07:22 AM

Pray to dog that the price doesn't go up in the mean time.

Also I think you need some decent holdings to get an account you can short stuff with, 40k in liquidish assets IIRC. Your broker can help you figure that out.