How do I transfer a certificate?
How do I Transfer Certificates for Deceased Owner(s)?
My legal name has changed; do I need to get my stock certificate(s) re-registered?
What is Individual Registration?
What is Joint Registration With Rights of Survivorship (JT/WROS)?
What is Custodial Registration?
How is a custodial registration changed?
What is a TOD (Transfer On Death) Registration?
I lost my stock certificate(s), what can I do?
What are Restricted and Control Securities?
What are the conditions of Rule 144?
Can the securities be sold publicly if I meet the conditions of Rule144 stock restrictions?
The transfer agent whose name is on my stock certificate has changed, what can I do?
The name of the company printed on my stock certificate has changed, what can I do?
How can I find information on an old stock certificate, in my possession?
How do I sell my security held in my possession?
Can I find out who the “street name” holders are?
What is the difference between Registered and “Street” share certificates?
What is a “Medallion Guarantee”?
When do I receive information on annual meetings and proxy voting?
When do I receive my dividend payments?
What should I do if my dividend check is lost or stolen?
How do I have dividends deposited directly to my bank?
What is Dividend Reinvestment?
How can I obtain a copy of my 1099?
What is Escheatment or Unclaimed Property?
GLOSSARY
For your convenience we have listed some helpful definitions for your research.
Affidavit
of
Domicile
A notarized form stating where a person
resides (or where a deceased party resided).
Affidavit of Loss/Affidavit of
Non-Receipt
A written statement that attests to the fact
that a shareholder is not in possession of
his/her certificate due to loss or
non-receipt. The affidavit should be
notarized.
Articles of Incorporation
The basic governing rules which set out the
rights and duties of officers, directors and
shareholders. This also includes the
organizational structure of the company.
Authorized Stock
The amount of stock that a corporate charter
permits a corporation to issue.
Basis
An amount usually representing the
taxpayer’s cost in acquiring an asset. It is
used for a variety of tax purposes including
computation of gain or loss on the sale or
exchange of the asset and depreciation with
respect to the asset.
Beneficiary of a Trust
A person or organization that has any
present or future interest, vested or
contingent, in the assets of a trust.
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Bylaws
The bylaws of a corporation constitute the
internal set of operating rules for the
corporation. In corporate law, the bylaws
have been regarded as the proper place for
the self-imposed rules and regulations
deemed necessary for the corporation’s
efficient functioning to be set forth.
Certification
A statement by court or authorized party
that declares the copy is true and correct
copy and is still in full force and effect.
Common Stock
Equity ownership in a corporation in the
form of Common Stock. May be in the form of
a physical certificate or book entry.
Court Appointment
A dated document issued by the court naming
an individual to act on behalf of an estate.
Generally this is the document, which names
the Executor, Administrator, or Personal
Representative.
Cumulative Voting
A provision that permits shareholders to
apportion the total number of votes they are
entitled to cast in the election of
directors in any fashion they desire. The
total number is equal to the number of
directors to be elected at the meeting
multiplied by the number of shares eligible
to be voted. With cumulative voting, each
shareholder may cast the total number of
votes that he or she is entitled to cast for
one director, or apportion them among the
candidates as desired.
Cusip Number
Cusip is an acronym for the Committee on
Uniform Securities of Identification
Procedures. Used to identify issuer and type
of security issued.
Custodian
A person or institution legally charged with
the responsibility of safeguarding the
property of another.
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Dividends
Corporations pay cash dividends declared on
Common Stock usually quarterly, to share
owners of record on the declared record
date. Shares directly registered on the
books of the corporation are paid directly
to shareholders while the corporation pays
shares held through a broker to the broker.
Escheatment
The turning over of property to the state of
last known address when such property is
considered abandoned. Different rules and
regulations apply to the various states.
Evergreen Provision
A provision of a stock option plan that
reserves a specified percentage of the
outstanding shares (or an exact number of
shares) for award each year. Evergreen plans
have no termination date. Frequently, shares
that are not the subject of an award may be
carried over for future grants.
Executor
An individual or institution nominated in a
will and appointed by the court to settle
the estate of an individual. If a woman is
appointed, she may be called an executrix.
Exercise
To implement the right under which the
holder of an option, warrant, or right is
entitled to buy or sell the underlying
security.
Fiduciary
A person or institution having a duty to act
for another’s benefit such as managing money
or property. A fiduciary must exercise care
in such management activity imposed by law
or contract.
Grantor
A person who establishes the trust. Also may
be called a trustor.
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Guaranteed
Signature
Provided by a Financial Institution; a
signature guarantee signifies that the
person signing the document is who they
claim to be, and that the financial
institution backs that guarantee by a bond
it has posted as a guarantor. See Medallion
Signature Guarantee.
Guardian
A person who has custodial rights and
responsibilities for a minor or a person who
is incapable of handling their own affairs.
A Guardian is Court Appointed.
Inheritance Tax Waiver
A document issued by the state certifying
that the estate tax have either been paid or
waived by the state.
Investor
Someone who commits money or capital in
order to gain a financial return as an
investment in the common stock of a company.
A shareholder.
Joint Tenancy
A form of registration, properly abbreviated
as “JT TEN” on stock certificates, that
means that all parties named on the
certificate have an equal interest in the
shares represented by the certificate. Thus,
if one of the tenants should pass the entire
value of the certificate becomes the
property of the surviving tenants.
(Identical to Joint Tenancy With Right of
Survivor ship.)
Legal Transfer
Transfer of securities which require
documents that are required for the
settlement of estates of deceased
shareholders, trust accounts, or corporation
holdings.
Medallion Signature Guarantee
A statement (stamp and signature) given by a
financial institution such as a commercial
bank, credit union, brokerage firm, etc.,
that is a member of the Securities Transfer
Association Medallion Program (STAMP), NY
Stock Exchange Program or Stock Exchange
Medallion Program (SEMP, MSP.) The Medallion
Program is not a notarization.
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Medallion
Stamp
Program
A program developed by the Securities
Transfer Association to meet the
requirements of an SEC Rule, which increases
the number and type of financial
institutions eligible to guarantee
signatures. By Medallion Guaranteeing the
stock to be sold, assigned or transferred,
the financial institution is taking
financial responsibility if the transfer is
completed fraudulently. A Medallion
guarantee may be obtained from a commercial
bank, brokerage firm, credit union or
savings and loans institutions that are
members of the Medallion Stamp Program.
Notary Seal
Provided by a Notary Public; a notary seal
signifies the party signing the document has
sworn the contents of the document are
truthful and accurate.
Over-the-Counter
The buying and selling of securities through
‘OTC’ stocks not listed but are sold
primarily through NASDAQ via a nationwide
network of brokers and dealers.
Power of Attorney
A document used by one person to give
another signing authority. A power of
attorney is in effect only as long as the
maker is alive. We will accept a photocopy
of the original Power of Attorney that is
Medallion guaranteed.
Preferred Stock
Preferred stockholders receive dividends
prior to common stockholders. Should a
company go out of business, and its assets
are liquidated, preferred stockholders are
entitled to distributions ahead of common
stockholders.
Probate
Probate is the formal, court supervised
process of turning a deceased party’s assets
over to his or her heirs.
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Prospectus
A formal written offer to sell securities
that sets forth the plan for a proposed
business enterprise or the facts concerning
an existing one that an investor needs to
make an informed decision.
Proxy
As a stockholder, you have the right to vote
on major policy decisions of a company. Most
shareholders vote by an absentee ballot or
proxy, which they receive prior to the
annual meeting.
Record Date
The day on which a company closes its
stockholder records for the purpose of
identifying the recipients of a forthcoming
dividend distribution or other rights.
Registered Shareholder
Securities held on the books of a
corporation in the name(s) of the
shareholder(s), as opposed to Street Name.
Direct owners receive all corporate
communications directly from a company.
Rights Offering
An offering of common stock to existing
shareholders who hold rights that entitle
them to buy newly issued shares at a
discount price before being offered to the
public.
Shareholders Of Record
Shareholders whose names actually appear on
the records of the corporation from which
the shares are issued. See also Street Name.
Small Estate Affidavit
A notarized document that the heir
completes. The form lists the names of all
heirs and next of kin of the decedent and
states that probate was not initiated for
the decedent. It must also be noted in the
affidavit that the estate does not exceed
the small estate maximum for the state in
which the person resided.
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Stock
Power
or Assignment
Form used to instruct the transfer of
ownership of a security from the registered
owner(s) to a third party. Required to be
completed in cases of registered book entry
shares or where back of certificate is not
used. All shareholder(s) signatures are
required and it should also be Medallion
Guaranteed. This replaces a signed
certificate.
Stock Split
Increase in a corporation’s number of
outstanding shares of stock without any
change in the shareholders’ equity or the
aggregate market value at the time of the
split.
Street Name
Ownership of shares which are held for the
benefit of the shareholder in a brokerage
account. These shares are not reflected in
the shareholder’s name on the records of the
corporation. See also Shareholders of
Record.
Street Name Holders
Shareholders who hold their shares in their
broker’s name.
Surety Company
Usually an insurance company, that
guarantees the faith of another. Used during
the stock certificate replacement process,
whereby a surety bond in the amount of two
percent of the market value of the security
to be replaced must be acquired.
Taxpayer Identification Number
The number used to report dividends and
other income. In the case of individuals it
is the Social Security Number, in all other
instances, it is the Employer Identification
Number.
Tenancy by the Entireties
A form of registration, properly abbreviated
as “TEN ENT”, on stock certificates, which
like a joint tenancy, provides for undivided
ownership of the property in question and
for the right of survivor ship. Unlike a
joint tenancy, Tenancy by the Entirety is
not subject to partition. Tenancy by the
Entirety is not available in all states, and
is only available to married couples.
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Tenancy
in
Common
A form of registration, properly abbreviated
as “TEN COM”, on stock certificates, which
provides for undivided ownership of the
property in question. Each Tenant in Common
owns a percentage of the shares i.e. each of
two tenants owns 50% of the shares. When
shares are registered Tenants in Common, the
representative of a deceased Tenant’s estate
must act to transfer the shares.
Tender Offer
An offer to buy shares of a corporation,
usually at a premium above the shares’
market price. A tender offer may arise from
friendly negotiations between the company
and a corporate suitor who must file a
statement with the Securities and Exchange
Commission.
Transfer on Death
A form of registration that allows
shareholders to name on their certificate
the party they would like to receive the
shares at the time of their death. Unlike
shares registered with a tenancy clause, a
form of registration that allows
shareholders to name on their certificate
the party they would like to receive the
shares at the time of their death. Unlike
shares registered with a tenancy clause, a
party named as beneficiary of TOD shares has
no interest in nor are they an owner of the
shares until the original owner dies.
Trust
A relationship established by agreement
between a grantor and a trustee to manage
assets or property for another’s benefit.
Trustee
A person or institution holding property in
trust. The trustee manages and invests the
assets and makes distributions according to
the terms of the trust.
Warrants
The opportunity to buy stock at a fixed
price during a specific period of time.
After a warrant is issued, it can be traded
like other investments. They carry no voting
rights and the holder does not receive
dividends.
A person or institution holding property in
trust. The trustee manages and invests the
assets and makes distributions according to
the terms of the trust.
If you wish to transfer your certificate(s), you must mail your certificate(s) to the transfer agent. (We recommend all certificates be sent by registered mail, insured with a return receipt requested). The certificates must be appropriately signed by all registered holders exactly as the name(s) appear on the face of the certificate(s) or must be accompanied by a Stock Power bearing the appropriate signature(s). In either case, the signature(s) must be guaranteed by a financial institution participating in an officially recognized Medallion Signature Guarantee Program. Additionally, you should provide instructions indicating how you wish the shares transferred. These instructions should include the name, address, and social security number for each transferee and the number of shares to be transferred. In some cases additional documents may be required to complete the transfer. Please contact the transfer agent to determine other forms that may be required.
How do I Transfer Certificates Because of Deceased Owner(s)?
With all stock ownership transfers, it is helpful to include a letter of instruction informing show the transfer is to take place. The letter should state the complete name, address, and Tax ID (SSN) of the individual(s) to whom the shares are to be transferred.
Individual Account:
Complete a stock power form or fill out the back of the stock certificate(s).
NOTE: A “Medallion Signature Guarantee” must be obtained for all signatures and affixed to the form and/or the certificate(s).
You must send us the outstanding stock certificates.
You must send us the “outstanding stock certificates”. If you are unable to locate all of your stock certificates, please contact us immediately.
The Guarantor will also require a certified copy of “death certificate” for the deceased owner. A certified copy of the “court appointment of estate representative” dated within 60 days of the request for transfer. This document is obtained when the estate is probated.
Also required is an affidavit of domicile for the deceased shareholder properly executed and notarized. This document will confirm the state of residence at the time of death for tax purposes.
An Inheritance Tax Waiver (consent to transfer) from the state where the deceased shareholder lived may also be required if the company is incorporated and the beneficiary resides in one of the following states.
Send to us your original stock certificate(s), stock power forms, and Inheritance Tax Waiver, if applicable, properly completed and executed.
IMPORTANT NOTE: Whenever you mail certificates, we strongly recommend that you insure the certificates for at least 2 1/2% of their current market value.
Joint Account:
Complete a stock power form or fill out the back of the stock certificate(s). NOTE: A “Medallion Signature Guarantee” must be obtained for all signatures and affixed to the form and/or the certificate(s). You must send us the outstanding stock certificates.
A letter of instruction indicating the full name(s) address and tax identification number for each transferee.
A certified copy of the decedent’s death certificate
An Affidavit of Domicile and, if applicable, an Inheritance Tax Waiver.
A Substitute W-9 certification form, completed for each individual transferee.
If ALL shareholders are deceased:
Complete a stock power form or fill out the back of the stock certificate(s). NOTE: A “Medallion Signature Guarantee” must be obtained for all signatures and affixed to the form and/or the certificate(s). You must send us the outstanding stock certificates.
You must send us the “outstanding stock certificates”. If you are unable to locate all of your stock certificates, please contact us immediately.
The Guarantor will require an Affidavit of Domicile for the deceased shareholder properly executed and notarized. This document will confirm the state of residence at the time of death for tax purposes.
The Guarantor will also require a certified copy of “death certificate” for all of the deceased owners except for the decedent who died last. A certified copy of the “court appointment of estate representative” dated within 60 days of the request for transfer. This document is obtained when the estate is probated.
An Inheritance Tax Waiver (consent to transfer) from the state where the deceased shareholder lived may also be required if the company is incorporated and the beneficiary resides in one of the following states.
Send to us your original stock certificate(s), Request to Transfer Stock Form, and Inheritance Tax Waiver, if applicable, properly completed and executed.
IMPORTANT NOTE: Whenever you mail certificates, we strongly recommend that you insure the certificates for at least 2 1/2% of their current market value.
My legal name has changed; do I need to get my stock certificate(s) re-registered?
Yes. If your name has changed legally (such as through marriage), you must complete a Stock Power and send to transfer agent. The Stock Power is printed on the reverse of your stock certificate or the reverse of the account statement (if you don’t have the actual stock certificate).
What is Individual Registration?
This registration gives sole ownership to the single individual and requires that the person’s legal name be used. The use of a first name is desirable. Example: Mary Smith (not M. Smith).
What is Joint Registration With Rights of Survivorship (WROS)?
This registration is used when two or more individuals have equal claim to the assets. Should one of the parties die, ownership of the assets passes to the surviving tenant(s). Example: Mary Smith & Barbara Smith Jt Ten WROS.
What is Tenants In Common?
This registration allows an appropriate portion of the assets to pass to the estate of the holder upon the holder’s death
rather than to the surviving tenant. Example: Mary Smith & Barbara Smith Ten Com.
What is Custodial Registration?
A custodial registration requires the names of the custodian and the beneficial owner who is a minor is a common type. For example: Mary Smith Cust Don Smith NY Unif Trans Min Act.
(Note: The two letter state abbreviation must appear before the “Unif”).
How is a custodial registration changed?
To add or remove a name on a security held in custodial registration, provide the transfer agent
with the following:
The certificate(s) should be properly endorsed by the current custodian, if still living, or if the minor is now of age, the former minor may sign.
A certified copy of his/her birth certificate must be provided, if the former minor signs. The endorsement should be Medallion Signature Guaranteed.
A letter of instruction indicating the full name, address and taxpayer identification number for each transferee.
A Substitute W-9 certification form, completed for each individual transferee. This form may be obtained from a bank or broker or downloaded from our Forms section.
What is Trust Registration?
Registering shares in the name of a Trust requires that specific information be provided: the
name of the trust and/or the maker or beneficiary and the date of the trust instrument.
For example: Mary Jones Tr U/A DTD 4/15/98 The Mary Jones Trust FBO Mary Jones.
What is a TOD (Transfer On Death) Registration?The owner of a security registered in TOD form must be a natural person or natural persons holding the security as an individual or joint owner with the right to survivor ship (i.e. joint tenants or tenants by the entireties). TOD registrations by non-natural persons (such as a trust or a partnership) are not permitted. Only one beneficiary per registration may be designated by the security owner. Registration in TOD form is indicted by the abbreviation “TOD”.
I lost my stock certificate(s), what can I do?
If your stock certificate is lost, stolen or destroyed notify the transfer agent immediately with the following information:
The owner must set forth, in an affidavit, all the facts surrounding the loss;
The owner must post an indemnity bond to protect the corporation and the transfer agent against the possibility that the lost certificate may be presented later by an innocent purchaser for value (the indemnity bond usually is an “open penalty” bond in which the owner of the lost certificate usually pays a premium for the bond, determined by the facts surrounding the lost and whether the securities were in registered or bearer form, and the bond does not protect the owner against losses incurred by the issuer or its transfer agent as a result of the original lost certificate); and
The owner must request a new certificate before the company receives notice that the missing certificate has been acquired by another bona fide purchaser.
What are Restricted and Control Securities?
Restricted securities are securities acquired in unregistered, private sales from the issuer or from an affiliate of the issuer. Investors typically receive restricted securities through private placement offerings, Regulation D offerings, employee stock benefit plans, as compensation for professional services, or in exchange for providing “seed money” or start-up capital to the company. Rule 144(a) (3) identifies what sales produce restricted securities. Control securities are those held by an affiliate of the issuing company. An affiliate is a person, such as a director or large shareholder, in a relationship of control with the issuer. Control means the power to direct the management and policies of the company in question, whether through the ownership of voting securities, by contract, or otherwise. If you buy securities from a controlling person or “affiliate,” you take restricted securities, even if they were not restricted in the affiliate’s hands. If you acquire restricted securities, you almost always will receive a certificate stamped with a “restricted” legend. The legend indicates that the securities may not be resold in the marketplace unless they are registered with the SEC or are exempt from the registration requirements. The certificates of control securities are usually not stamped with a legend.
What are the conditions of Rule 144?
RESTRICTED SECURITIES OF REPORTING ISSUERS
Affiliate or Person Selling on Behalf of an Affiliate
During six-month holding period no re-sales under Rule 144 permitted.
After six-month holding period may resell in accordance with all Rule 144 requirements including: current public information, volume limitations, manner of sale requirements for equity securities, and filing of form 144.
Non-Affiliate (and has not been an affiliate during the prior three months)
During six-month holding period no re-sales under Rule 144 permitted.
After six-month holding period but before one year, unlimited public re-sales under Rule 144 except that the current public information requirement still applies.
After one-year holding period, unlimited public re-sales under Rule 144; need not comply with any other Rule 144 requirements.
RESTRICTED SECURITIES OF NON-REPORTING ISSUERS
Affiliate or Person Selling on Behalf of an Affiliate
During one year holding period no re-sales under Rule 144 permitted.
After one-year holding period, may resell in accordance with all Rule 144 requirements, including: current public information, volume limitations, manner of sale requirements for equity securities, and filing of Form 144.
Non-Affiliate (and has not been an affiliate during the prior three months)
During one year holding period no re-sales under Rule 144 permitted.
Unlimited public re-sales under Rule 144; need not comply with any other Rule 144 requirements
*Please note – this is general information only; not legal advice, nor represents any form of a legal opinion.
**http://www.sec.gov/rules/final/2007/33-8869.pdf
Can the securities be sold publicly if I meet the conditions of Rule144?
Even if you have met the conditions of Rule 144, you can’t sell your restricted securities to the public until you’ve gotten the legend removed from the certificate.
The transfer agent whose name is on my stock certificate has changed, what can I do?
This often happens because of mergers and consolidations in the transfer agent industry. Finding names of successor agents is not so easy unless you know the business.
The name of the company printed on my stock certificate has changed, what can I do?Mergers and corporate name changes are very common. Finding the current company name and the transfer agent becomes almost impossible. Finding information about company name changes online is very difficult.
How can I find information on an old stock certificate, in my possession?
You may find some information about your stock from the major stock exchanges (NYSE, Amex, NASDAQ,). However, this information is usually limited to delisting announcements, and will not help you determine the value for your stock. The Transfer Agent, listed on the front of your security, is another source of information. As long as the Transfer Agent still represents the company, they can help you determine the value of your stock certificate. If the transfer agent is no longer in business, or no longer represents the company, contact the Corporation Commission in the state where the stock was originally registered. If the company is still in business, the state agency can tell you so, and can probably direct you to the new Transfer Agent. However, they will not be able to tell you the value of your stock. If you’re still stuck, try an on-line resources search.
How do I sell my security held in my possession?
You can deliver the certificate to your broker with your instructions to sell or you can deliver the certificate to the issuer with instructions to change how you hold your security from certificate to direct registration and to sell (many issuers can accommodate sale requests). When selling a security through the issuer, the issuer will sell your security under the terms and conditions in place for that issue. For example, some sell orders will be executed on the day the issuer receives them, and some orders are aggregated for frequent, but not daily, execution. (Note: you should ask the issuer if it offers a selling service and what the terms and conditions are.) Proceeds from the sale will be mailed to you three business days after the date of sale. When selling through your broker, your instructions will be acted on immediately and in accordance with the guidelines it provides to you. Proceeds from the sale will be made available to you or credited to your account three business days after the date of sale.
Can I find out who the “street name” holders are?
Typically, “street name” beneficial owners are not identifiable. However, an issuer may be able to identify a portion of the “street” population by obtaining a listing of Non-Objecting Beneficial Owners (“NOBO” list). An issuer can request a NOBO listing from Broadridge. The listing will indicate those beneficial owners who have instructed their broker that they do not object to the disclosing of certain ownership information about themselves. Beneficial owners that do object to the disclosure of certain ownership information about themselves are called Objecting Beneficial Owners. Non-Objecting Beneficial Owners and Objecting Beneficial Owners constitute the entire “street name” population. Consequently, a NOBO list will only provide the identities of a segment of the aggregate beneficial owner population.
What is the difference between Registered and “Street” share certificates?
When you purchase shares of a public company through a stockbroker, the broker typically keeps your certificates and registers them in “”street”” name. That means your stockbroker has the only record of your securities holdings and you must do any re-registration of your certificates through your stockbroker. If you don’t like that arrangement, you can request your stockbroker to register your shares with the corporation. The actual certificates will then be mailed to you or kept in safekeeping at your broker. A stock certificate is evidence of your ownership in a public corporation. It is a valuable document that deserves careful protection. If you take possession of your certificates, keep them in a secure place such as a safety deposit box. Replacing certificates is costly and inconvenient.
What is a “Medallion Guarantee”?
A Medallion Guarantee takes the form of a stamp and signature on a stock certificate or stock power and confirms that the signature on a certificate or stock power is genuine. A Medallion Guarantee is obtained from an eligible institution, such as a commercial bank, broker, trust company, etc. Only institutions participating in an officially recognized Medallion Guarantee program may provide this Medallion Guarantee.
What is DTC?
DTC is an acronym for the Depository Trust Company. DTC is the central depository for the brokerage community where stock and bond certificates are deposited or transferred by the broker participants. The main function of DTC is to clear and settle stock trades and to provide custody of securities in an automated environment. For every trade, there is a buyer and a seller. DTC provides an efficient and safe way for the buyer and seller to exchange securities electronically and in a centralized location eliminating the need for physical stock certificates and time for transit. DTC is a member of the Federal Reserve System, owned by the Depository Trust and Clearing Corporation (DTCC). DTCC, in turn, is owned by several banks, brokerage houses and trading exchanges.
What is Cede & Co.?
Cede & Co. is merely the nominee name for DTC. DTC and Cede & Co. are synonymous and are often used interchangeably.
What is Broadridge?
Broadridge is a firm that many of the brokerages have contracted with to perform annual meeting mailings and proxy tabulations. Individual brokerage houses have out-sourced annual meeting processing to Broadridge. When a broker search is performed, the results often indicate that a large percentage of the proxy material is going to be delivered to Broadridge for further distribution to the beneficial holders of the various brokerages. Broadridge will mail the proxy material to beneficial shareholders and tabulate the proxy results. There exists a small percentage of brokerages that have not enlisted Broadridge to perform annual meeting processing.
When do I receive information on annual meetings and proxy voting?
Thirty to forty-five days before the company’s annual meeting, the transfer agent or your broker will mail you an annual report with a notice of the annual meeting and proxy statement. At the meeting, shareholders elect directors and act on matters such as management and shareholder proposals. If you can’t attend, you can vote by proxy with the cards included in the meeting announcement.
When do I receive my dividend payments?
Corporations that pay dividends will make payments on shares you hold on a record date specified by the Board of Directors (you must own shares on the record date to qualify for a dividend.) If you don’t receive your dividend check within three days of the payable date, you should contact your transfer agent for a replacement.
What should I do if my dividend check is lost or stolen?
If your dividend check is missing, contact the transfer agent immediately. After you authorize a stop payment order against the original check, the transfer agent will issue a replacement. Obviously, the original check is no longer valid.
How do I have dividends deposited directly to my bank?
Many companies offer direct deposit of dividends to the shareholder’s bank account. Check with the company’s transfer agent to determine if an Electronic Funds Transfer (EFT) is available.
What is “backup” withholding?Federal law indicates that all shareowners must comply with IRS regulations requiring the submission of a taxpayer identification number or a Form W9 certifying that you are not subject to Backup Withholding. Unless the transfer agent has the required information, they must withhold 31% of dividend payments and sale proceeds at the time of payment.
What is Dividend Reinvestment?
Dividend Reinvestment Plans offer shareholders a convenient and simple method for buying more shares with minimal service fees. Typically, you reinvest all or part of your cash dividends, and you may have the option of making additional purchases by check or automatic withdrawal from your bank account. Participants receive periodic statements of account for tracking share transactions and account balances.
How can I obtain a copy of my 1099?
A copy of a 1099 may be obtained by calling the transfer agent. You must provide your Social Security number and the name of the company.
What is Escheatment or Unclaimed Property?
Every state has unclaimed property laws which declare securities, and other assets to be abandoned after a period of inactivity of three to five years. During this abandonment period banks, brokerage firms, mutual funds, and other organizations are required to try to return the valuables to their rightful owners. If they are unsuccessful, they then turn the property over to the state’s abandoned-property division or unclaimed property office. The unclaimed property is returned to the state of the property owner’s last known address. If no address is known, it is returned to the state in which the business holding the funds is incorporated. The unclaimed property office then tries to find the rightful owners, by placing advertisements in newspapers and trying to trace the owners. Unfortunately, many states only advertise the new additions to their files. There is no time limit on claiming your property. Abandoned property has been reunited with its rightful owners 30, 40, and even 50 years after it was turned over to the state. Some states have unclaimed property dating to the late 1800s. If the owner of the property is deceased, the relatives can file for the unclaimed property. If you think there might be unclaimed property that belongs to you, call or write to the unclaimed property office in each state in which you or your deceased relatives have ever lived.
