Where to hold stock certificate from a private company?

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zeugmite
Posts: 1086
Joined: Tue Jul 22, 2008 11:48 pm

Where to hold stock certificate from a private company?

Post by zeugmite » Thu Dec 27, 2018 10:27 pm

Can you deposit it with your broker? Or basically you are on your own in terms of safekeeping? What if you lose it?

Skiandswim
Posts: 119
Joined: Tue Dec 21, 2010 3:24 pm

Re: Where to hold stock certificate from a private company?

Post by Skiandswim » Thu Dec 27, 2018 10:57 pm

Many private companies manage their stock certificates and cap tables electronically. Outsource firms, such as Carta, provide web based solutions. You might ask the company if they have or plan to have electronic certificates. In the past I was forced to hold then in a safe deposit box.

123
Posts: 5419
Joined: Fri Oct 12, 2012 3:55 pm

Re: Where to hold stock certificate from a private company?

Post by 123 » Thu Dec 27, 2018 11:16 pm

A safe deposit box is probably the best place. Your broker can't do much with it since it is not publicly traded. If you sell your shares, or the company is bought out by someone else, you may need the certificate to get your money. Getting a replacement certificate for small company shares can be show and burdensome, particularly if you're the first one lost and the company has to figure out how to do it so it fits in with their record keeping mechanisms.
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