Colorado Lost Stock Certificate bond is needed if you lose or misplace your stock certificate. For the majority of stocks, you still own your shares even without the paper certificate. Follow the steps below to get your certificate replaced.
Companies that have publicly traded securities typically use transfer agents to keep track of the individuals and entities that own their stocks and bonds. Most transfer agents are banks or trust companies, but occasionally a company acts as its own transfer agent. Contact the company’s investor relations department to determine the transfer agency.
Once you have determined the Transfer Agent, you must notify the transfer agent of the loss. The transfer agent will place a “stop transfer” on the certificate. This is to prevent others from cashing it in. The transfer agent or the broker-dealer will then notify the SEC of the lost or missing certificates and provide you with written instructions to have the certificates replaced. Included in these instructions will be a requirement to provide and Open Penalty Surety Bond. The transfer agency will usually propose a facility to obtain the bond. You are not under any obligation to use this facility and Surety1 ca usually save a third or more of the cost.
To replace your lost stock certificate, a “lost instrument bond” for a stock certificate is required by the issuing company. This bond is a third-party guarantee against financial loss for the company. Learn more about what the bond does and why it’s required.
Colorado residents can apply here for a “lost instrument bond” using our easy to navigate, online application. We have been writing bonds in Colorado since 2003 and are rated A+ by the Better Business Bureau.