FAQ

Questions About Transfering Stock

Questions About Restricted Stock

Questions about Lost, Stolen, and Damaged Securities

Questions about your Account

Questions about Electronic Deposits (DWAC and DRS)


Questions About Transfering Stock

Q: How do I transfer my shares to someone else?

A: Send your stock certificate, Medallion Guaranteed stock power, instruction letter, and payment to our office at 16540 Pointe Village Dr, Ste 206, Lutz, FL 33558.


Q: Do I have to sign the back of my stock certificate?

A: To change the registration of shares, the certificate must be endorsed by the registered owner. This can be accomplished two ways. Option One: Sign the back of each stock certificate and obtain a Medallion Guarantee. Option Two: Sign ONE stock power to represent all of the certificates you are presenting for transfer and obtain a Medallion Guarantee. If you are NOT changing the registration of your stock, and instead are submitting your stock for an exchange or denomination change, you do NOT need to sign the back of your certificate or stock power.


Q: What is a Medallion Guarantee?

A: In basic terms, a Medallion Guarantee is a guarantee that the signature on a stock power or endorsed stock certificate is indeed the signature of the registered owner of the stock. The Medallion stamp is bright green in color, and can be obtained at most local banks and large brokerage firms. Click here to learn what the SEC says about medallions.


Q: I cannot obtain a Medallion Guarantee. What should I do?

A: If you live in the US, you are required to obtain a Medallion Guaranteed signature stamp on your stock certificate endorsement or stock power. However, if you live outside the US and it is impossible for you to obtain a Medallion, a notary or other equivalent signature guarantee is acceptable.


Q: Where should I send my transfer request?

A: Please send all transfer packages to 16540 Pointe Village Dr, Ste 206, Lutz, FL 33558. If you need to send additional documents to us, please reference your unique batch number on each document. All documents other than physical certificates, stock powers, and Affidavits can be emailed to inbox@cleartrusttransfer.com.


Q: Do I have to send my original certificate along with my transfer request?

A: Yes. All transfers and cancellations of stock require original stock certificates and original endorsements.


Q: Is there a fee for transferring stock?

A: Yes. Please contact us for assistance in calculating the fees owed.


For more information, check out our transfer guide and library of forms.

 

Questions About Restricted Stock

Q: Why does my stock have a red restrictive legend on it?

A: If your certificate has a red stamp on the front or the back, it is restricted under Rule 144. Stock that is issued directly from an issuer or acquired by affiliates of an issuer is restricted unless there is a registration or safe-harbor exemption that allows them to be sold. Rule 144 is an exemption to registration that allows shareholders to sell restricted stock once certain provisions are satisfied. See our Restricted Stock section to learn more.


Q: How can my restricted stock become free-trading?

A: Technically, there is no such thing as purely free-trading shares. You will always be subject to certain resale provisions when selling stock you acquire from an issuer or privately. However, it is common for people in our industry to refer (inaccurately) to stock that is issued without legend as “free-trading.”

Under Rule 144, if you intend to sell your shares in a public transaction, you can apply to have the legend removed once certain provisions are met. Check out our Rule 144 section, or click to request our popular Rule 144 Guide.


Q: Is a legal opinion required to release the legend from my shares?

A: You have two options. You can either contact the issuer’s retained legal counsel, or you can contact outside qualified securities counsel. There are multiple sources eager to write your legal opinion, and it is important that you choose an attorney who is knowledgeable about Rule 144 and who will conduct due diligence concerning your eligibility prior to writing you a legal opinion. At the end of the day, you (the shareholder) are solely responsible for complying with Rule 144. Our recommendation.


Q: How can I get a legal opinion?

A: You have two options. You can either contact the issuer’s retained legal counsel, or you can contact outside qualified securities counsel. There are multiple sources eager to write your legal opinion, and it is important that you choose an attorney who is knowledgeable about Rule 144 and who will conduct due diligence concerning your eligibility prior to writing you a legal opinion. At the end of the day, you (the shareholder) are solely responsible for complying with Rule 144. Our recommendation.


Q: Do I have to sell my shares in order to release the restrictive legend?

A: Rule 144 is written to allow a legend to be removed pursuant to an intended or actual sale of stock. Therefore, if you apply to release the legend from your shares, you will be required to sign a Seller’s Representation Letter stating your intent to sell the stock.


Q: Where can I learn more about Rule 144?

A: We recommend you review the SEC’s website for the most direct information source. Also, you should consult with qualified securities counsel. In addition, there are a variety of useful resources available on the web. Check out our Rule 144 [link to Rule 144 page] section, or click to request our popular Rule 144 Guide.


Questions about Lost, Stolen, and Damaged Securities

Q: My certificate has been lost, stolen, or damaged. What should I do?

A: Contact us immediately to report this occurrence. We will place a cautionary stop on your certificate, which prevents a fraudulent claim on the security.


Q: How do I replace my lost certificate?

A: Complete an Affidavit of Loss and obtain a surety bond. See our Lost Certificates section for more information..


Q: I found my certificate, which I previously reported lost. What should I do?

A: Please let us know so that we may lift the stop on your certificate. If your stock has already been replaced by a new certificate, you must return the old certificate to us immediately for cancellation.


Questions about Lost, Stolen, and Damaged Securities

Q: I have moved. How do I update my address?

A: Please send us a Contact Update form via e-mail, fax, or mail.


Q: I would like a statement of my account. How do I request one?

A: Email us your request at inbox@cleartrusttransfer.com.


Q: What is the status of the transfer request I sent to you?

A: Email us for an update at inbox@cleartrusttransfer.com.


Questions about Electronic Deposits (DWAC and DRS)

Q: What is DWAC and DRS?

A: Both are means through which your shares can be depositing to or withdrawn from your brokerage account.


Q: What is the difference between DWAC and DRS?

A: Both systems essentially accomplish the same thing: your shares will be moved from your ClearTrust account to your brokerage account, or vice versa. The key difference is that all DWAC movements require a Medallion Guaranteed stock power (just like a traditional transfer), whereas DRS is entirely paperless.


Q: I would like to deposit stock into my brokerage account using DWAC. What should I do?

A: Request your broker to open a DWAC deposit request. Instructions for doing so are located on your book statement from ClearTrust. Mail us an original stock power, Medallion Guaranteed, along with an instruction letter to DWAC your shares.


Q: I would like to deposit stock into my brokerage account using DRS. What should I do?

A: Request your broker to open a deposit request via DRS. Instructions for doing so are located on your book statement from ClearTrust.


Q: Can I have shares of any stock deposited electronically?

A: No. Only issuers who have been accepted into the DWAC and DRS programs at DTC can take advantage of these electronic depositing systems.

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