To sell a paper stock certificate, you confirm the shares still have value, contact the company’s transfer agent (or a broker willing to handle physical certificates), sign a stock power form with a medallion signature guarantee, and mail everything using a tracked, insured service. From the day your package arrives to the day funds reach your account, most sales take one to three weeks.
Check That the Shares Are Still Worth Something
Old certificates outlive the companies printed on them. Mergers, name changes, bankruptcies, splits, and reverse mergers can leave a certificate representing something very different from what it says on the face, or nothing at all. The price printed on the paper, if there is one, tells you nothing about current market value.
Start with the transfer agent named on the certificate. If that firm no longer exists, contact the state agency that handles incorporations in the state where the company was originally incorporated. A broker can also research the certificate’s history. Certificates with no investment value sometimes still carry worth as collectibles.1U.S. Securities and Exchange Commission. Old Stock and Bond Certificates
Decide Between the Transfer Agent and a Broker
Every publicly traded company appoints a transfer agent to keep shareholder records, process ownership changes, cancel and issue certificates, and pay dividends.2U.S. Securities and Exchange Commission. Transfer Agents The agent’s name is normally printed on the certificate itself. If the agent has changed through a corporate restructuring, the company’s investor relations department can point you to the current one.
Most brokerage firms will also accept a physical certificate, deposit the shares into an electronic account, and sell them for you. Not every broker offers this, and those that do may charge a processing fee.3U.S. Securities and Exchange Commission. Investor Bulletin: Holding Your Securities Call before mailing anything to confirm the firm accepts certificates and to get their submission instructions.
The paperwork below applies either way. The transfer agent is the ultimate destination; a broker just packages the request on your behalf.
Fill Out the Stock Power and Get a Medallion Guarantee
Two documents authorize the transfer, and the transfer agent will reject the submission without both.
The Stock Power Form
A stock power is a limited power of attorney that lets the transfer agent or broker move shares out of your name. It asks for the exact corporate name as printed on the certificate, the certificate number, and the number of shares being transferred. Download the form from the transfer agent’s website, or pick one up at a brokerage office.
Sign the form exactly as your name appears on the face of the certificate. If the certificate reads “John A. Smith” and you sign “John Smith” or “J. A. Smith,” expect a rejection. Even small differences in middle initials or suffixes cause delays.
The Medallion Signature Guarantee
A medallion signature guarantee is a specialized stamp that verifies your identity and confirms your signature is genuine. The institution issuing the stamp accepts financial liability if the signature turns out to be forged, which is why transfer agents insist on it.4U.S. Securities and Exchange Commission. Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities A regular notarization is not a substitute; a notary only confirms that a signature was made in their presence and carries no financial guarantee.
Banks, credit unions, and broker-dealers that participate in a recognized medallion program can issue the stamp. Bring valid government-issued photo ID. Some institutions charge a fee, and many will only stamp for existing account holders, so call ahead.
Mail the Certificates Safely
Package the signed stock power, a transmittal letter, and the certificates together. The transmittal letter should include your name, mailing address, phone number, Social Security number for tax reporting, and clear instructions about what you want done (sell the shares, transfer them into a brokerage account, change the name on the certificate).
A paper certificate is a valuable document, and replacing one that gets lost in the mail is expensive. Send the package by USPS Registered Mail or an insured overnight courier. Registered Mail offers tracking, proof of delivery, and insurance coverage up to $50,000.5United States Postal Service. Adding Extra Services Many transfer agents suggest mailing the unsigned certificate and the signed stock power in separate envelopes. If one goes missing, the other is useless on its own.
When the transfer agent receives your package, you should get a confirmation notice by email or mail letting you know the review has started.
How Long the Sale Takes and When You Get Paid
The transfer agent will authenticate the certificate, verify the signature guarantee, and check the supporting documents. That review usually takes several business days depending on the agent’s volume. Once cleared, the agent executes the sale on the open market.
Settlement follows the standard T+1 cycle: the trade finalizes one business day after execution, with the buyer delivering payment and you delivering the security in that window.6U.S. Securities and Exchange Commission. Shortening the Securities Transaction Settlement Cycle The one-business-day standard took effect on May 28, 2024, replacing T+2.7FINRA. Understanding Settlement Cycles: What Does T+1 Mean for You
Payment follows settlement. A mailed check adds several days; direct deposit is faster. The transfer agent deducts its service fees from the proceeds and sends a final statement showing sale price, fees, and other details you’ll need at tax time.
If the Certificate Is Lost
Contact the transfer agent right away and request a “stop transfer” so no one else can move the shares out of your name. A broker can help start this too.8SEC.gov. Investor Bulletin: Lost and Stolen Securities
To get a replacement, the issuer will normally require you to buy an indemnity bond that protects the issuer and transfer agent if the original ever resurfaces in someone else’s hands. The bond typically runs two to three percent of the current market value of the missing shares.8SEC.gov. Investor Bulletin: Lost and Stolen Securities On a $50,000 holding, that is $1,000 to $1,500, plus whatever replacement fee the transfer agent charges. Once you have the replacement, sell it using the steps above.
If You Inherited the Certificates
Inherited shares require more paperwork. Requirements vary by transfer agent and by whether the estate went through probate, but expect to provide:
- A certified death certificate (an official copy, not a photocopy).
- Letters testamentary or letters of administration from the probate court, showing your authority to act for the estate.
- An affidavit of domicile, a notarized statement of the deceased’s state of residence at death, used to determine taxing authority.
- A stock power form signed by the executor or administrator, with a medallion signature guarantee.
Call the transfer agent before sending anything. Every agent uses its own forms, and incomplete packages cause long delays.
Your cost basis on inherited stock is generally the fair market value on the date the original owner died, not the price they originally paid.9Office of the Law Revision Counsel. 26 U.S. Code 1014 – Basis of Property Acquired From a Decedent If a parent bought shares for $5,000 decades ago and they were worth $50,000 on the date of death, your basis is $50,000. Sell for $51,000, and you owe capital gains tax on $1,000.
Taxes on the Sale
The transfer agent or broker who handles the sale reports the proceeds to the IRS on Form 1099-B. Many old paper certificates qualify as “noncovered securities” because they were bought before modern cost-basis reporting rules took effect. For noncovered securities, the broker is not required to report your cost basis to the IRS.10Internal Revenue Service. Instructions for Form 1099-B You have to determine and report it yourself.
Finding Your Cost Basis
Cost basis is generally what you or the original purchaser paid for the shares, plus commissions or transfer fees at the time of purchase. For very old certificates, this can take some digging. Useful sources include old brokerage statements, purchase confirmations, corporate records, and historical price data. For inherited shares, use the fair market value on the date of death.
If you sell only part of a holding and cannot identify which specific shares went out the door, the IRS default treats the earliest-acquired shares as sold first.10Internal Revenue Service. Instructions for Form 1099-B
Filing the Sale
Report the sale on Form 8949, which feeds Schedule D. For noncovered long-term holdings, use Part II and check box E or F depending on whether you received a 1099-B. Enter the correct cost basis yourself in column (e).11Internal Revenue Service. Instructions for Form 8949
Certificates held longer than a year qualify for long-term capital gains rates. For 2026, those rates are 0%, 15%, or 20% depending on taxable income. Single filers pay 0% on long-term gains up to $49,450 in taxable income, 15% up to $545,500, and 20% above that. Joint filers pay 0% up to $98,900 and 15% up to $613,700.12Internal Revenue Service. Revenue Procedure 2025-32 Keep the transfer agent’s final statement with your 1099-B; you may need both to file accurately.