Business & Finance Stocks-Mutual-Funds

How to Sell Stocks Without a Broker's Letter of Instruction

    • 1). Find a buyer willing to purchase the shares. You can often find a buyer among your family, friends or social groups. Be prepared to discuss why you are selling and why it is a good buy for the person. It's important to discuss and agree on terms in detail, including price, method of payment, and how soon after you mail the certificate the buyer will hand over the funds.

    • 2). Write on the back of the share certificate the name, full address and Tax Identification Number of the new shareholder. Double check the information to ensure accuracy and write clearly. The Transfer Agent will record the information exactly as provided.

    • 3). Fill out the transfer panel, also on the back of the certificate, and sign your name on the signature line. It may be advisable however to wait until you are with a member of a recognized Medallion Signature Guarantee program before signing. There are legal advantages to doing so since the Medallion program member in effect also becomes a witness to you physically signing the document.

    • 4). Find the nearest Schedule I Chartered Bank or a financial institution that is a member of a recognized Medallion Signature Guarantee program to guarantee your signature, if you have not already. Most commercial banks and credit unions are members, so call your bank first to determine if it is a member, and if there is a fee to guarantee your signature.

    • 5). Call the company's transfer agent to determine if all criteria to transfer the shares have been met, including any fees to be paid. Some transfer agents also request the completion of a transfer form. Verify with the agent who the check should be made out to. Ideally, receive payment for the shares and then mail the share certificate, along with a check for fees if necessary, preferably by registered mail.

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