Jump to content

Registering shares in OTC companies


mdleraris
 Share

Recommended Posts

Does anyone know of a cost effective method to do register shares in OTC companies?  Or perhaps a broker who does this?  My broker wants a few hundred bucks for this and since I am looking to do it for shares on a few dozen companies the cheapest method would be best.

 

Ultimately I am looking for info on some dark OTC companies and it seems like registering the shares is the only surefire way to get the info and get it quickly.  However, if you have experience with this and have any other suggestions I would appreciate any other comments you might be willing to share.

 

Thanks!

Link to comment
Share on other sites

Thanks for the info, Schwab711.

 

In the case of at least some of the shares I am looking at, I believe what my broker explained is that the shares are not held at the DTC.  They need to contact the company directly and get a physical stock certificate to get me on the ownership log and thereby receive the shareholder communications directly.  That costs more and I believe getting the certificates in my name is different than what IB and Fidelity are purporting to do at those prices, which appears to be just a bookkeping entry at the DTC.  So I guess really what I am asking for is what are the cheapest ways to get the certificates?  Or absent that, what are other ways to obtain the shareholder info in a timely manner?

 

Thanks.

Link to comment
Share on other sites

Guest Schwab711

For $100, I got the certificate from Fidelity.

 

My shares were held by Corporate Stock Transfer in Fidelity's name before registering. Custodian shouldn't matter.

Link to comment
Share on other sites

Guest Schwab711

https://www.thebalance.com/what-is-the-direct-registration-system-or-drs-for-stocks-357536

 

The cost might depend on the security (since you are probably talking about OTC stocks) but direct registration is what you want.

 

You can register your shares through a stock power form (example: https://shareholder.broadridge.com/pdf/stockpowerform.pdf). I believe this is what your broker (or whoever your current registered owner) would fill out. Company's acting as their own transfer agent shouldn't matter. They still have to correctly reflect the shareholder of record.

 

There's not much more that can be said. Call around and see what folks are willing to charge.

 

SEC Tips on DRS:

https://www.sec.gov/reportspubs/investor-publications/investorpubsholdsechtm.html

 

DTCC on DRS:

http://www.dtcc.com/settlement-and-asset-services/securities-processing/direct-registration-system

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...