How to Check If Old Share Certificates Are Still Valid
Navigate the process of confirming your old share certificates' validity and claiming any remaining value.
Old share certificates are tangible documents representing company ownership. Many people acquire these certificates through inheritance or by discovering forgotten investments. While most stock ownership is now electronic, these physical certificates can still hold significant financial value. This guide helps individuals determine the validity and potential value of these historical documents.
Identifying the Issuing Company
The first step in assessing an old share certificate involves examining the document. Extract key information such as the full name of the issuing company, its state of incorporation, and the certificate’s original issue date. These details trace the company’s history and current status.
Next, research the company’s current legal standing. Companies may still be active, have changed names, merged, been acquired, or become defunct or bankrupt. Understanding these outcomes directs further inquiries.
State Secretary of State websites are valuable resources for researching active or formerly active companies. These sites typically offer a business search function to find incorporation details, current status, and recorded changes. This search reveals if the company is in good standing or if its corporate registration has been dissolved.
For publicly traded companies, the Securities and Exchange Commission (SEC) EDGAR database is a tool. This free public database contains electronic filings, including annual reports on Form 10-K. Reviewing a company’s 10-K filings provides information about its corporate structure, mergers, acquisitions, and operational status.
For very old companies or those difficult to trace, historical business directories or financial archives may offer insights. This phase identifies the company and its legal status, not share value or how to claim them. This foundational research ensures subsequent steps are accurately targeted.
Locating the Transfer Agent
After determining the issuing company’s status, identify its transfer agent. A transfer agent is typically a financial institution appointed by a corporation to manage its shareholder records. Their role includes issuing and canceling stock certificates, maintaining shareholder registers, facilitating ownership changes, distributing dividends, and processing stock splits.
To find the relevant transfer agent, or their successor, check the investor relations section of the company’s official website if it is active. Many publicly traded companies list their transfer agent and contact information there.
Information about a transfer agent is also often included in a publicly traded company’s annual SEC filings, such as the Form 10-K. Consulting these filings can confirm the transfer agent, especially if the company’s website is unavailable or outdated. Industry associations, like the Securities Transfer Association (STA), provide general industry information. If a company merged or was acquired, the original transfer agent may have been replaced by the new entity’s agent. Researching the acquiring company’s transfer agent will be necessary in such situations.
Verifying and Claiming Share Value
After identifying the issuing company and its transfer agent, contact the transfer agent directly. Have all share certificate details ready, including the certificate number, number of shares, and issue date. Be prepared to provide personal shareholder information, such as the name on the certificate, current address, and Social Security Number, to verify ownership.
The transfer agent will verify the physical certificate and cross-reference details with their ownership records. They will confirm if the certificate is legitimate and if the shares are still registered in the name of the certificate holder or their estate.
If the shares are valid and registered, the transfer agent can assist in determining their current value. For publicly traded companies, this value is based on the prevailing market price. For private companies, valuation can be more complex and may require additional steps, potentially involving the company directly or independent valuation experts.
Claiming the value of valid shares often involves transferring them into a brokerage account, which facilitates their sale or continued holding. Transfer agents can guide you through this process, which may involve completing specific forms and incurring transfer fees, typically ranging from $15 to $75 per certificate. If shares were held for an extended period without activity, dormancy fees might also apply.
If shares have been dormant for a prolonged period, typically three to five years depending on state regulations, they may have been “escheated.” Escheatment is the process by which unclaimed property, including uncashed dividends or forgotten shares, is turned over to a state’s unclaimed property division for safekeeping until the rightful owner or heirs claim it.
If the transfer agent indicates the shares have been escheated, search the unclaimed property database for the state where the shareholder’s last known address was located. The National Association of Unclaimed Property Administrators (NAUPA) website, unclaimed.org or MissingMoney.com, provides a centralized portal to search across participating state databases.
When claiming escheated property, provide proof of identity and a clear connection to the original owner. This may include documentation like a death certificate or probate documents if claiming as an heir. The process of reclaiming escheated shares is generally free, but it requires careful documentation and adherence to state-specific procedures.