what to do with paper stock certificates

What to do with paper stock certificates

Paper stock certificates are physical documents that historically served as legal proof of ownership in a corporation. If you own one (or many), you may be asking what to do with paper stock certificates now that most markets use electronic records. This guide explains how to identify and verify certificates, determine whether they still represent tradable shares, convert them to electronic form, transfer or sell them, handle lost or stolen certificates, understand tax and estate implications, and consider collectible value.

This article is written for beginners and intermediates alike and focuses on practical next steps you can take today. Throughout, the phrase "what to do with paper stock certificates" appears so you can quickly find the exact guidance you need.

As of 2024-06-01, according to Investor.gov (the SEC’s investor education site), lost or stolen certificates remain a common cause of investor confusion and fraud reports. That regulatory guidance underscores the importance of verifying, securing, and—where appropriate—converting paper certificates to modern electronic records.

Types of stock certificates and registration

Understanding what to do with paper stock certificates starts with knowing the two main registration types:

• Registered certificates: show the owner’s name on the certificate and in the issuer’s transfer agent records. Registered certificates are the most common form for modern corporate issuances and provide clearer legal title.

• Bearer certificates: name no owner and function like cash — possession implies ownership. Bearer certificates are extremely rare for publicly traded companies today because they present high fraud and theft risk.

Most public-company shares are now held electronically. Common forms include:

• Book-entry/ISIN/CUSIP records managed by transfer agents and central securities depositories.
• Street-name ownership: shares held in a brokerage account under the broker’s name for convenience.
• Direct Registration System (DRS): electronic registration in the shareholder’s name with the transfer agent without a physical certificate.

If you are asking "what to do with paper stock certificates," check whether the certificate is registered to your name or held in bearer form — that affects transfer steps, replacement options, and required documentation.

Identifying and verifying a certificate

When determining what to do with paper stock certificates, the first practical step is verification. Find and note the following items printed on the certificate:

• Company name and logo
• CUSIP or ISIN number
• Certificate number and number of shares
• Registered owner name (if registered)
• Name of the transfer agent (often printed on the certificate)
• Corporate seal, signatures of company officers or the transfer agent
• Jurisdiction of incorporation (state or country)

Use these details to confirm authenticity and the issuer’s current status.

Using the transfer agent and corporate records

The transfer agent is the primary resource for people asking what to do with paper stock certificates. Steps:

1. Locate the transfer agent’s name on the certificate. If not present, check the issuer’s investor relations materials or corporate filings.
2. Contact the transfer agent by phone or email and provide the certificate number, CUSIP, and owner name. Ask them to verify whether the certificate is valid and whether the company still has shares outstanding under that CUSIP.
3. Check public filings (EDGAR for U.S. issuers) and the company’s investor relations page for corporate actions that might affect shares (merger, spin-off, delisting).
4. If the company is foreign, consult the appropriate national securities registry (for example, SEDAR+ in Canada or the country’s corporate registry).

If you cannot find a transfer agent listed, the company’s corporate secretary or investor relations office can direct you. This step answers the core of "what to do with paper stock certificates" by establishing whether the certificate still represents legal, transferable shares.

Determining the value

After verifying authenticity, determine whether the certificate represents currently tradable shares and what those shares are worth.

• If the company is publicly traded: identify the current ticker and look up the market price. Multiply the market price by the number of shares shown on the certificate to estimate market value.
• If the company is private, inactive, merged, or dissolved: the certificate’s market value may be zero for stock purposes but could retain collectible or historical value (see the scripophily section).
• Face/par value: older certificates may show a par value. Par value is an accounting artifact and often bears no relation to market value.

When a company has merged, reorganized, or been acquired, shares may have been exchanged for cash or new securities. Transfer agents and corporate filings will show any exchange ratio or payments owed to former holders.

As of 2024-06-01, authoritative investor-education sources emphasize contacting the transfer agent to determine whether any corporate action created a claim on cash or replacement securities. That is the practical first step if you wonder what to do with paper stock certificates from companies that no longer trade under the original ticker.

When the issuing company no longer exists or has merged

If the issuer has merged, been acquired, or dissolved, trace the corporate lineage:

1. Search the company’s name and CUSIP in the SEC EDGAR system or equivalent filing system to find merger agreements and shareholder communications.
2. Ask the transfer agent whether there is a successor issuer or whether holders were paid out.
3. If shares were cancelled without distribution, ask whether there are remaining claims or escrowed proceeds for former shareholders.

Tools that help trace corporate actions include corporate filings, state secretary of state registries, and transfer agent records. These sources answer many questions about what to do with paper stock certificates from legacy issuers.

Converting paper certificates to electronic form

Most holders who ask "what to do with paper stock certificates" want to convert them to an electronic form (either DRS or a brokerage account) because electronic holdings are easier to trade and safer to store.

Common conversion options:

• Deposit the physical certificate into a brokerage account. The broker will instruct the transfer agent to reissue shares to the broker’s street name and credit your account.
• Request DRS registration with the transfer agent so the shares are electronically registered in your name without a broker intermediary.
• Request that the transfer agent reissue a new certificate in your name if you prefer a newer paper certificate (less common).

Converting to DRS or into a broker account retains legal ownership while eliminating the risks inherent in holding a physical document.

Steps to convert (practical checklist)

If you decide to convert, gather these items before contacting the transfer agent or broker:

• The original paper certificate(s)
• Valid government ID (driver’s license or passport)
• A completed transfer or DRS request form from the transfer agent or your broker
• Medallion Signature Guarantee (if required; see below)
• A completed IRS W-9 form for U.S. persons (tax reporting)
• Secure packaging and shipping methods if mailing the certificate

Typical timeline: transfer agents commonly require 2–6 weeks to process a conversion, depending on whether a medallion guarantee or additional verification is required. Expect additional processing time for older certificates, complex corporate actions, or international transfers.

Medallion Signature Guarantee and endorsements

A Medallion Signature Guarantee is a specialized stamp that certifies the signature on a stock transfer or power of attorney is genuine and that the guarantor accepts liability for fraudulent signatures. Banks, credit unions, and certain broker-dealers provide Medallion guarantees.

When required, the transfer agent will specify whether a Medallion guarantee must accompany the endorsement or stock power. If you are asking what to do with paper stock certificates, confirm this requirement early; obtaining a Medallion guarantee can require in-person visits and valid ID.

If you cannot obtain a Medallion guarantee in your locality, transfer agents offer indemnity-bonding options in many cases (see the lost/stolen section below).

Selling or transferring paper certificates

If your primary question is what to do with paper stock certificates because you want to sell, you have multiple options:

• Deposit the certificate into a brokerage account and sell through the market.
• Transfer the certificate directly to a buyer via the transfer agent (private sale), where the agent reissues the shares to the buyer upon proper documentation.
• Sell to a professional buyer or firm that purchases old certificates (sometimes used for obscure or inactive issues).

Security and practical considerations:

• Never mail original certificates without insurance and signature confirmation. Use registered or certified mail with sufficient insurance.
• Obtain a written purchase agreement for private sales. Buyers will typically require evidence of good title and may request a Medallion guarantee.
• Expect transfer agent fees, reissue fees, or broker fees — ask the agent for a fee schedule before proceeding.

Selling without a broker and fee considerations

Selling without a broker (privately) can avoid brokerage commissions, but expect other costs:

• Indemnity bond fees: If a certificate is lost, damaged, or needs reissuance without an original, you may need an indemnity bond (see Replacement section). Bond costs and premiums vary and may be applied in private transfers.
• Transfer agent reissue fees: Transfer agents typically charge fees to cancel and reissue certificates. Fee amounts vary by agent and issuer.
• Medallion guarantee costs: Some providers charge a fee for Medallion guarantees.

A careful cost-benefit review helps you decide whether to sell privately or via a broker. If the position is small, brokerage sale may be simpler despite commissions.

Lost, stolen, or damaged certificates

One of the most frequent reasons people ask what to do with paper stock certificates is because a certificate was lost, stolen, or damaged.

Immediate steps:

1. Contact the issuer’s transfer agent and report the loss or theft.
2. Request the transfer agent place a stop transfer or flag on the certificate number to prevent unauthorized transfers.
3. File a police report for theft — many transfer agents require a report when a theft is alleged.
4. Ask the transfer agent for their replacement process and required forms.

Reissuing a certificate — steps and costs

Replacement commonly involves:

• Affidavit of loss completed and notarized.
• Indemnity bond (also called a surety bond) covering the value of the shares — the bond protects the issuer if the original certificate surfaces and is fraudulently negotiated. Bond premiums vary with the bond amount, issuer, and underwriter policies.
• Payment of reissue and administrative fees.
• Proof of identity and sometimes proof of the chain of title (e.g., older wills, assignments).

Indemnity bond amounts are typically tied to the fair market value of the securities and the transfer agent’s underwriting rules. Small holdings may involve relatively modest bond and processing costs; larger holdings may require substantial bond amounts and underwriting.

The replacement timeline varies: expect several weeks to a few months, especially if underwriting an indemnity bond or verifying estate documentation.

As of 2024-06-01, SEC/Investor.gov materials emphasize beginning this process promptly to reduce the risk of fraudulent conversion and to preserve any claims to corporate distributions.

Tax, reporting, and regulatory considerations

When deciding what to do with paper stock certificates, consider tax and regulatory implications.

• U.S. persons: transfer agents and brokers require IRS Form W-9 for tax reporting when you convert or sell shares. Dividends and sale proceeds are reported to the IRS.
• Non-resident holders: transfer agents may require IRS Form W-8BEN or equivalent for tax withholding purposes.
• Reporting gains or losses: sale of shares held on paper is taxable like any other equity sale; maintain records of acquisition date and cost basis for capital gains purposes.
• Unclaimed property: some companies turn unclaimed distributions into escheatment programs if a shareholder cannot be located; check state unclaimed property databases if you suspect unpaid dividends or proceeds.

Keep careful records of transfers, replacements, and communications with transfer agents. These records will support accurate tax reporting and protect title during disputes.

Security and best practices for handling physical certificates

If you retain paper certificates while you decide what to do with paper stock certificates, follow these security steps:

• Store originals in a safe or bank safety deposit box rather than a common home safe if security is a concern.
• Make high-quality scans and store them separately (offline backup and encrypted cloud backup if desired).
• Insure mailings when transferring certificates: use registered mail with signature required and insurance equal to the certificate value.
• Avoid sharing certificate photos publicly — scammers sometimes use images to create convincing forgeries or social-engineering schemes.

If you use a professional service to handle transfers, ensure they are reputable and ask for references. Always verify transfer agent contact details using the issuer’s official investor relations channels rather than contact information provided by unknown third parties.

Estate planning and probate issues

Paper certificates can complicate estate administration. When planning, consider the following:

• If a certificate is registered solely in the deceased holder’s name, it will generally pass through probate unless a transfer-on-death mechanism or beneficiary designation exists.
• To simplify transfer to heirs, you can:
  • Transfer or re-register shares into a revocable trust or joint tenancy with rights of survivorship.
  • Convert shares to electronic form and add beneficiary designations where the transfer agent permits.
• Executors should contact the transfer agent early to learn required probate documents, such as letters testamentary, certified death certificate, and affidavits.

If you inherit paper certificates, the transfer agent will outline probate documentation and whether reissue or transfer requires a Medallion guarantee or indemnity bond.

Collectible value (scripophily)

Even when the underlying stock is worthless, some old certificates have collectible value. Known as scripophily, collectors value certificates for:

• Historic or aesthetic features (engraving, artwork, signatures of famous founders)
• Rarity and provenance
• Certificates from defunct or historically significant companies

If you suspect collectible value, consult professional dealers or auction houses specializing in scripophily. Appraisal services can estimate market interest. Note that collectible value is distinct from equity value: a worthless stock certificate might still fetch money from collectors.

International and jurisdictional differences

Procedures for what to do with paper stock certificates vary by jurisdiction. Examples:

• United States: transfer agents and the Direct Registration System are common. U.S. filings and EDGAR research help trace corporate actions.
• Canada: consult SEDAR+ and Canadian transfer agents; local provincial corporate registries may hold relevant records.
• Other countries: national securities depositories and corporate registries differ in form and access.

If cross-border tax or re-registration is required, consult tax and legal professionals in the relevant jurisdictions. Transfer agent instructions typically describe international mailing, notarization, or apostille requirements.

Common pitfalls and FAQs

Q: Do I lose ownership if I lose the certificate?
A: Losing the physical certificate does not automatically extinguish your ownership. Ownership is a legal concept recorded by the issuer/transfer agent, not the paper alone. You must follow the transfer agent’s replacement procedure (affidavit of loss, indemnity bond) to re-establish negotiable title.

Q: Is it worth keeping old certificates?
A: If the underlying company still exists and the shares have value, convert to electronic form or deposit to a brokerage for safety and liquidity. If the company is defunct but the certificate has collectible value, consider appraisal for scripophily. If uncertain, contact the transfer agent for guidance.

Q: How long does conversion take?
A: Simple conversions into a broker account often take 2–4 weeks. DRS or reissue by transfer agents may take 2–6 weeks or longer if additional verification or indemnity bonding is needed.

Q: When is a Medallion guarantee required?
A: Transfer agents commonly require Medallion guarantees for transfers or reissues that involve a change in registration or the negotiation of large certificates. Always confirm with the transfer agent whether a Medallion guarantee or alternative is required.

Practical checklist — recommended next steps for holders

This short checklist answers the immediate question of what to do with paper stock certificates:

1. Verify the certificate: note company name, CUSIP, certificate number, registered owner, and transfer agent.
2. Contact the transfer agent to confirm the certificate’s validity and the issuer’s current status.
3. Determine value: check whether the issuer is publicly traded and find the current market price or any corporate-action payouts.
4. Decide on treatment: convert to DRS, deposit to a brokerage account, sell privately, or pursue replacement if lost.
5. Gather documents: original certificate, ID, transfer/DRS forms, W-9/W-8 forms as applicable, and prepare for a Medallion guarantee if required.
6. Secure the certificate while you act: safe storage, insured mailing, or bank safe deposit box.
7. If certificate is lost or stolen, immediately notify the transfer agent and file a police report; begin the indemnity/reissue process.
8. For estate issues, consult the transfer agent and an estate attorney to streamline probate and beneficiary transfer.

References and further reading

Sources used for this guide (titles only; contact transfer agents and regulators for forms and updated instructions):

• "Lost or Stolen Stock Certificates" — Investor.gov (SEC).
• "What to Do With Old Stock Certificates" — LegalClarity.
• "What To Do With a Physical Stock Certificate" — RBC.
• "3 Ways to Sell Stock Certificates" — wikiHow.
• "How to Sell Stock Certificates Without a Broker" — UpCounsel.
• "Is It Worth It To Cash in Old Stock Certificates?" — Investopedia.
• "I Lost My Share Certificate. Do I Still Own the Stock?" — Investopedia.
• "How to Determine the Value of an Old Stock Certificate" — Canadian Securities Administrators.
• "The Disappearance of Paper Stock Certificates" — Investopedia.
• "Managing Paper Stocks" — PBMares Wealth Advisors.

As of 2024-06-01, according to Investor.gov, transfer agents are the authoritative first contact for replacement and verification procedures.

Notes and disclaimers

Procedures, forms, fees, and legal requirements vary by jurisdiction, issuer, and transfer agent. This guide is informational and not legal or tax advice. Consult the issuer’s transfer agent, corporate investor relations, or qualified legal and tax professionals for actions specific to your certificates.

More practical help

If you want to move from paper certificates to a modern trading environment, consider converting to an electronic record (DRS) or depositing into a brokerage account. For security-conscious holders, electronic registration reduces physical risks and simplifies estate transfer.

Bitget supports simplified onboarding and secure custody options for digital assets; while this guide focuses on traditional equities, the principle remains: converting to a secure, recognized registry or a trusted custody solution reduces fraud risk and simplifies future transfers. Explore Bitget Wallet for safe storage of eligible digital assets and learn how Bitget’s custody features may fit into your broader asset management strategy.

Further assistance: contact the issuer’s transfer agent or your financial/legal advisor to begin the steps outlined above.

Appendix: Sample wording for common forms

Below are neutral examples of the type of wording you might encounter. Always use transfer agent or legal counsel templates rather than copying these verbatim.

• Affidavit of Loss (sample excerpt):
  "I, [name], hereby declare that I am the rightful owner of certificate number [#] representing [#] shares of [Company], and that the original certificate has been lost, destroyed, or stolen and cannot be located despite reasonable efforts. I agree to indemnify the company and transfer agent against any claim arising from reissuance."

• Stock Power (sample excerpt):
  "For value received, I hereby sell, assign and transfer unto [name] [#] shares represented by certificate #[#] and irrevocably constitute and appoint [agent] my attorney to transfer the same on the books of the within-named corporation."

Use notary services or Medallion signature guarantee providers as required by the transfer agent.

If you would like, I can expand any section into a printable checklist, draft an affidavit template for your jurisdiction, or provide a step-by-step conversion timeline tailored to a specific issuer. For help converting certificates you already own, start by sending the issuer and certificate details to the transfer agent listed on the certificate — they are the official source for the next steps.