ques - stock limit order

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my name
Posts: 531
Joined: Sun Dec 23, 2007 4:28 pm
Location: NJ

ques - stock limit order

Post by my name » Mon Nov 13, 2017 2:23 pm

IBM uses Computershare for holding their stock. I am told by Computershare that IBM common stock held in my account cannot be sold with a limit order (but the separate ESPP shares can be). They form only lets you say how many shares, and cost basis type, and they display the estimated market value.

Does this make sense? I have no idea if you can set limit outside Computershare.

bhough
Posts: 41
Joined: Wed Feb 15, 2017 6:53 pm

Re: ques - stock limit order

Post by bhough » Mon Nov 13, 2017 5:13 pm

I hold stocks through computershare as well and that is how I understand the sell process. You are basically selling at what they define the market on the time/date they say (I believe they buy twice/month or something of that nature). The flip side is that they will reinvest your dividends without charging you and you can purchase without a broker for a nominal fee. Some of my computershare and shareowner stocks they charge me only $1/share if I schedule them.

Have to take the bad with the good. I think overall it is a good deal for the small investor that wants to make regular contributions. I know this strategy runs counter to bogleheads and I promise (on my bogleheads boyscout patch) that most of my investments are low cost indexing, but these are fun and still thrifty.
b

my name
Posts: 531
Joined: Sun Dec 23, 2007 4:28 pm
Location: NJ

Re: ques - stock limit order

Post by my name » Mon Nov 13, 2017 8:16 pm

Thank you !

Iridium
Posts: 95
Joined: Thu May 19, 2016 10:49 am

Re: ques - stock limit order

Post by Iridium » Mon Nov 13, 2017 11:52 pm

my name wrote:
Mon Nov 13, 2017 2:23 pm
Does this make sense? I have no idea if you can set limit outside Computershare.
Pretty much every broker will allow you to set limit orders. I do not consider Computershare to be a real broker. No investor ever chooses them. Companies choose them to 1) keep track of who owns shares and process requests from share owners to transfer those shares, 2) distribute dividends to and collect proxy votes from shareholders, and 3) operate stock plans that encourage long-term ownership. In the case of #3, having fewer and less convenient options to sell the stock is a feature not a bug. The policy seems to vary from stock plan to stock plan (as you observed with ESPP supporting limit orders). I have seen that for some companies, Computershare won't sell them for you at all (I see this mostly with Computershare's foreign subsidiaries). The good news is that Computershare is more than happy for you to transfer your shares. They are one of the only places I have seen that will actually push your shares into a brokerage account. If you want to place a limit order, my recommendation would be to transfer your shares to your brokerage account and then sell them there. The commission is likely to be cheaper as well.

my name
Posts: 531
Joined: Sun Dec 23, 2007 4:28 pm
Location: NJ

Re: ques - stock limit order

Post by my name » Tue Nov 14, 2017 6:10 am

Thanks, very helpful.

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