Computershare is a well-known stock transfer company that manages direct stock ownership for investors. It acts as a record-keeping agent and provides investment services for shareholders who own stocks directly through companies, instead of through a broker. If you hold stocks with Computershare, you may be wondering how to sell them and get your money. This process is often called “cashing out.”
Before moving forward, it is important to understand what type of stock account you have. When you buy shares through Computershare, they are usually held in a Direct Registration System (DRS) account. This means the shares are registered in your name and not held by a broker. This system allows you to have full control over your shares, but it also means you have to go through a few steps to sell them.
Preparing to Sell Your Computershare Stock
To cash out your Computershare stock, you need to prepare yourself and understand what options are available. Computershare offers different ways for you to sell your shares. You can sell them online through your Computershare account, or you can sell them by mail using a paper form. In some cases, you may also transfer the shares to a brokerage account before selling them. Each method has its own steps, timeframes, and costs.
If you choose to sell your shares directly through Computershare, the process is fairly simple. But you need to make sure you have an online account set up and your identity has been verified. Computershare takes security seriously, so you may be required to answer questions, provide a phone number, or verify your Social Security Number if you are in the United States.
Before selling, make sure you know how many shares you own and whether they are in a dividend reinvestment plan (DRIP). If you are enrolled in a DRIP, some of your shares may be fractional. Computershare can sell fractional shares too, but they will round the amount when selling.
How to Sell Shares Online Through Computershare
Selling shares online is the fastest and easiest way to cash out your stock. First, log into your Computershare account. If you do not have an online account, you will need to register using your account number, which can be found on your statement or stock certificate.
Once you are logged in, find the option to “Sell Shares.” Computershare will guide you through the process step-by-step. You will be asked how many shares you want to sell. You can choose to sell all, some, or a specific number. If you have shares in different plans, like a DRIP and a DRS account, you can decide which ones to sell first.
Computershare offers two main types of sales: market order and batch order. A market order will sell your shares as soon as possible at the current market price. This option is faster, but the price may change quickly. A batch order sells your shares with others in a group at the end of the trading day. This option can sometimes get a better price but may take longer.
After choosing the type of sale, you will confirm the transaction. Computershare will charge a small fee for processing the sale, including a flat fee and a per-share fee. This will be taken from your total sale amount. After the sale is complete, you can choose how you want to receive your money. Most people choose direct deposit or a check by mail.
Selling Shares by Mail
If you prefer not to use the online system, or if you have trouble accessing your account, you can sell shares by mail. This takes more time but may be useful if you are not comfortable with computers.
To sell by mail, request a Transaction Request Form or use the form that came with your statement. Fill out the form clearly, stating how many shares you want to sell and how you want to receive the money. You will also need to sign the form and, in some cases, get your signature guaranteed. This is like a notary but specific for financial documents. It ensures that your identity has been confirmed.
Once the form is complete, mail it to the address provided by Computershare. You should use certified mail or a courier service to track your package. After Computershare receives your form, they will process your sale and send your money by your chosen method.
Keep in mind that mail transactions take longer. It could take a few weeks for the check to arrive or the funds to be deposited. There is also the risk of delays or lost mail, so be careful and follow all instructions.
Transferring Shares to a Broker Before Selling
Some investors prefer to sell their stock through a traditional broker like Fidelity, Charles Schwab, or TD Ameritrade. To do this, you need to transfer your shares from Computershare to your brokerage account first.
This is called a DRS transfer. Start by contacting your broker and asking them to request the shares from Computershare. They will need your Computershare account number and the number of shares you want to transfer. Most brokers have an online system or paper form for this process.
Once the broker sends the request, Computershare will release the shares to your brokerage account. This can take a few days. After the shares show up in your broker’s system, you can sell them like any other stock.
Transferring to a broker may offer more flexibility and lower fees, especially if you already have an investment account. It also gives you access to market orders, limit orders, and other tools that Computershare may not provide.
How You Will Receive Your Money
After your shares are sold, you can choose how to get paid. Computershare offers several payment options. The most common is direct deposit into your bank account. This is fast and secure. You will need to provide your bank routing number and account number.
Another option is a paper check. Computershare will mail it to the address on your account. This can take several business days. If your address is out of date, your check may get lost, so make sure your information is current before selling.
If you are selling shares after the death of a shareholder, there are special rules. The estate must provide legal documents, such as a death certificate and a letter of testamentary. Computershare will guide the executor through the process. Once everything is verified, the estate can sell the shares and receive the proceeds.
Tax Considerations When Cashing Out
When you sell stock, the IRS considers it a taxable event. This means you may have to pay capital gains tax on the profit you make. The amount you owe depends on how long you held the shares and your tax bracket.
If you held the shares for more than one year, you qualify for long-term capital gains, which are taxed at a lower rate. If you held them for less than one year, you will pay short-term capital gains tax, which is the same as your regular income tax rate.
Computershare will send you a Form 1099-B after the sale. This shows how much you sold the shares for, and it may include your cost basis (how much you originally paid for them). Keep this form for your tax return. If the cost basis is missing, you will need to calculate it yourself.
To avoid surprises, consider speaking to a tax advisor before selling large amounts of stock. They can help you plan for the tax impact and avoid penalties.
Fees and Costs to Watch Out For
Computershare charges fees for selling shares. These fees vary depending on the company and the number of shares. Typical fees include a flat transaction fee, such as $25, plus a fee per share, like $0.12 per share.
If you are selling a large number of shares, these fees can add up. Also, if you request a check instead of direct deposit, there may be an additional fee for printing and mailing. Computershare’s fee schedule is usually listed on your company’s plan page or your account documents.
It is important to read the fine print and understand the costs before selling. This will help you avoid unexpected deductions from your sale proceeds.
What Happens to Dividends and Fractional Shares
If you are in a dividend reinvestment plan, you may have fractional shares. These are small pieces of stock, like 0.35 of a share, that come from reinvested dividends. When you sell all your shares, Computershare will also sell the fractional ones and include them in your payout.
Dividends that were declared but not yet paid at the time of sale may still be sent to you after the transaction. If you only sell part of your shares, you can continue to receive dividends on the remaining shares.
Make sure to check your dividend payment options. You can usually choose between reinvesting dividends into more shares or having them sent to your bank account.
Avoiding Common Mistakes
Many investors make mistakes when trying to cash out their Computershare stock. These errors can delay the process or reduce your final payout.
Some common mistakes include forgetting to update your contact information, ignoring tax forms, selling shares without understanding the fees, or choosing the wrong type of sale. Others include failing to plan for taxes or trying to sell too quickly without considering market conditions.
To avoid these problems, take time to read all instructions carefully. Use Computershare’s online resources, and do not hesitate to call their customer service if you need help. Planning ahead and being patient can save you time and money.
Final Thoughts
Cashing out your Computershare stock may seem complicated at first, but the process is quite manageable once you understand the steps. Whether you sell online, by mail, or through a broker, it’s important to know your options and prepare properly. Be aware of fees, taxes, and account requirements to ensure a smooth transaction. With careful planning, you can turn your shares into cash and use it however you like—whether that’s reinvesting, saving, or spending.
Computershare provides a secure and reliable way to manage direct stock ownership. By taking the time to learn how their system works, you can make smart decisions that protect your investment and financial future.
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