How to Endorse Stock Certificates

Endorsing stock certificates properly ensures their safety.
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Stock certificates seem like vestiges of a past in which putting legal obligations in writing meant putting them on paper. In the 21st century, the electronic age, they have become practically obsolete, reduced nearly to the status of novelty. In many cases, to acquire a stock certificate, you must order it specially and pay a fee. However, if you do happen to own a paper stock certificate, passed on to you perhaps from an elderly relative, you can duly sign it over to a brokerage.

Step 1

Check the spelling of your name on the certificate. Just as with a check, you must endorse a stock certificate using a spelling identical to what appears on the front.

Step 2

Sign your name on the back of the certificate. There should be a space clearly marked for endorsement.

Step 3

Write the name of the brokerage on the back of the certificate. This appoints the brokerage as your attorney, which means only the brokerage can negotiate the certificate.

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