Certificates/PENNY STOCKS

 

PROCEDURES FOR DEPOSITING SHARE CERTIFICATES

 

For a client to be able to deposit Certificates of Shares in their accounts through TRADEX, the Clearing Firms that handle Tradex clients’ accounts have the following procedures:

•  Provide copy of the Certificate of Shares that wants to be deposited.
•  Certificate of Shares has to be in the same name as the account.
•  Depending on the status of the shares (Free Trading or Restricted) or number of shares, please provide the following documents:

REQUIRED DOCUMENTS FOR EACH STOCK TYPE

Global
Stock Type Required Documents When document is required Standarts Shares Document transmittal Account number should be referenced on all documents Stock power If the back of the certificate is not signed by shareholder LLC If shareholder is Limited Liability Co. Partnership Agreement If shareholder is a partnership Corporate Resolution If shareholder is Corporation Trust Agreement If certificate is in name of a TRUST Affidavit of Domicile If shareholder is deceased - Required Always Death Certificate If shareholder is deceased - Required Always Letter of Testamentary If shareholder is deceased - Required Always Restrictive Shares Document transmittal Account number should be referenced on all documents Stock power If the back of the certificate is not signed by shareholder LLC If shareholder is Limited Liability Co. Partnership Agreement If shareholder is a partnership Legal Opinion Always Required Form 144 Always Required 144 Brokers Always Required 144K Sellers Letter Required for restricted stock held for two or more years Legal Required for restricted stock held for two or more years by some Transfer Agents 144 Sellers Letter Required for restricted stock held for two or more years Trust Agreement If certificate is in name of a TRUST Affidavit of Domicile If shareholder is deceased - Required Always Death Certificate If shareholder is deceased - Required Always Letter of Testamentary If shareholder is deceased - Required Always Over 1 million shares Document transmittal Account number should be referenced on all documents Stock power If the back of the certificate is not signed by shareholder LLC If shareholder is Limited Liability Co. Partnership Agreement If shareholder is a partnership Corporate Resolution If shareholder is Corporation Trust Agreement If certificate is in name of a TRUST Affidavit of Domicile If shareholder is deceased - Required Always Death Certificate If shareholder is deceased - Required Always Letter of Testamentary If shareholder is deceased - Required Always

TRADEX'S BUSINESS RULES FOR ACCEPTING A CERTIFICATE*

Global
Business Rule 1. Company and Tranfer Agent (TA) cannot be the same 2. Tranfer Agent must be on Penson's approved TA list 3. President  and Secretary of issuer cannot be the same 4. News Accts or 1st time transactions may require manager approval 5. If U.S. issuing Co. has Canadian Transfer Agent, then TA must be on approved TA list 6. Name on Cert = Name on Acct. in Phase3

*For certificates over 1 million shares, Tradex requires a letter from the issuer stating that the shares are for free to trade (Resolved). A sample of the Corporate Resolution can be downloaded below:

Corporate Resolution (PDF | 33 KB)
Corporate Resolution - Over 1 million (PDF | 34 KB)
Corporate Resolution - 1 Signer (PDF | 30 KB)
Irrevocable Stock Power (PDF | 17 KB)

 

To obtain more information on how to deposit Share Certificates, please contact us at: 1-800-849-0590 or info@tradexdirect.com