Author Topic: Registering shares in OTC companies  (Read 755 times)

mdleraris

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Registering shares in OTC companies
« on: February 21, 2019, 11:37:21 AM »
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!


Schwab711

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Re: Registering shares in OTC companies
« Reply #1 on: February 21, 2019, 12:41:09 PM »
« Last Edit: February 21, 2019, 12:46:57 PM by Schwab711 »

mdleraris

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Re: Registering shares in OTC companies
« Reply #2 on: February 21, 2019, 05:32:31 PM »
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.

Schwab711

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Re: Registering shares in OTC companies
« Reply #3 on: February 21, 2019, 05:38:23 PM »
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.
« Last Edit: February 21, 2019, 05:50:55 PM by Schwab711 »

scorpioncapital

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Re: Registering shares in OTC companies
« Reply #4 on: February 22, 2019, 01:15:25 AM »
IB charged me $500 usd.

mdleraris

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Re: Registering shares in OTC companies
« Reply #5 on: February 22, 2019, 06:30:56 AM »
Yes!  That is what Schwab wants as well.  And I am trying to avoid that, especially since it is a transaction I need to duplicate a several times.

Schwab711

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Re: Registering shares in OTC companies
« Reply #6 on: February 22, 2019, 07:40:54 AM »
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

mdleraris

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Re: Registering shares in OTC companies
« Reply #7 on: February 22, 2019, 08:03:13 AM »
thanks again, Schwab