The DRiP Investing Resource Center

Your Location For Dividend Reinvesting Information

Message Boards

Beginners Corner

Moderator is drppingsoprano

Date: 7/25/2018 6:07:24 AM
Author: AlexChilton Country Flag
Subject: 19521/19586 - selling shares?
 
 
<= Previous    Post Response    Post New    Next =>

Message:

londondrip on 1/20/2018 2:11:17 PM

Hi All,

Looking to cash in and sell some shares in my holdings (Riocan and BMO). I've never done before. How do I go about this? Are there fees to consider also?

Wayneman on 1/21/2018 6:32:38 AM

Best way is to sell them through a discount broker account.

How ?
-Request a certificate from the Transfer Agent.
-They will mail it to your home. No charge.
-Take the certificate to the discount broker (e.g. a bank, like Royal Bank)
-Transfer it over to your broker, requires signature guarantee.
-They will send it by internal courier to their headquarters. No charge.
-A few days later it should be in your account.
-Watch the market and sell it when the price is to your liking.

Be sure to use a broker that does not charge a fee for depositing it. (Some do.)

Jon-o on 1/22/2018 1:55:15 PM

Can you not sell BMO through Computershare? I think it's $55.

aB on 1/22/2018 1:55:40 PM

There will also be a commission fee (6.95-9.95) when you sell.
You might be able to get some free trades when you open the account to avoid this.

Another fee to be aware of when opening an account, the account itself might have a maintenance fee.


[Website Address]

sage_78 on 7/24/2018 7:41:34 AM

I did this - requested a certificate, deposited to my bank brokerage account and then sold all my Riocan shares. And then I started getting a check for 60 cents every month - for the original 5 shares. I dug out that certificate (was in my possession all along) - now do I do the same process? How does the brokerage sending me .60 cent cheques know I've gotten rid of it?

Wayneman on 7/24/2018 7:47:06 PM

How does the brokerage sending me .60 cent cheques know I've gotten rid of it?

If you have the shares at home and they are registered in your name, then there is no brokerage sending you money. The money is paid by the company to the registered owner (you), as recorded by their transfer agent.

If you take the shares to your bank's brokerage, then you will transfer the ownership
from your name to the broker's name. Then the dividend will go to the broker as the registered owner, and they will credit the money to you as their client. When you ask the broker to sell the shares, they will transfer the registration from them to the new owner. The company's transfer agent takes care of the transfers and records the ownership.

A lot of people are unaware of the fact that when they buy shares via a discount broker that they do not actually own the shares. Their broker does. The broker just records the shares as owed to your account. They actually hold your shares in their name instead of in yours and just give you credit for them in your account. It is easier this way because then they don't have to get you to transfer shares every time you sell. Since they hold thousands of them and buy and sell thousands every day, no shares actually trade hands. There is just an electronic change in the numbers. It is just the same as if you write me a cheque for $100 and I deposit it to my account. They simply reduce your account by $100 and increase my account by $100.

AlexChilton on 7/25/2018 5:07:24 AM

Used to be called 'Street Name' (Registered in your name) and 'Safe Keeping' (Brokerage holds it).

Not sure those terms are used anymore.

Alex.

sage_78 on 7/25/2018 10:16:08 AM

Ok, I think I understand now. I appreciate the explanation!
 
<= Previous    Post Response    Post New    Next =>
 
Author Profile
  Number of Messages Past Six Months: 0
  Location: South of the Mason-Dixon
  Fav. Companies: AFL ARTNA BMS GIS HON HRL JNJ NOC NSC UVV XOM are my active DRiPs.
  Inv. Style: A diversified portfolio of fee-free DRiPs, reinvesting the dividends and evenly OCPing all monthly. IRAs & 401k self directed & invested in dividend paying stocks; other securities in taxable accounts.
  Website 1 : www.lightreading.com/ Mobility & Telecom Data Industry News
  Website 2 : http://www.realclearhistory.com/ Addicted to History
  Website 3 : www.savingsbonds.gov/ Well, ibonds used to be good for you...
 
Your Unread Messages (Number in parenthesis is unread messages)
   DRiPs for U.S. Investors (21982)      DRiPs for Canadian Investors (39294)      U.S. Money and Tax Matters (4894)      Canadian Money and Tax Matters (9305)   
   Stock Talk (19950)      Overlooked Stocks (3217)      MoneyPaper Specials (2623)      Share Exchange (35276)   
   Brokerage, T.A., & Bank Accounts (3423)      Bugs and Recommendations (3169)   



This website is maintained by George L Smyth