Do you hold shares in paper format or electronically (and why ?) ?

MrEarl

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Hello,

I've been holding some shares in paper format for years, but I am now considering transferring them all into electronic format and holding them through my account with my broker.

  • With regards to long term holdings, I don't feel the need to have them ready to sell at short notice so traditionally that has been one reason for holding the shares in paper format. I am now considering selling some shares and reinvesting proceeds elsewhere, so obviously that is a consideration.
  • Also, there were times when I had more than one stockbroking account (and other times when I did not have any), so where to store them electronically was a question. These days, I only have one account and don't intend to open a second one. I expect to retain this account for the next few years (if not longer).
  • Then there were considerations such as cost (if I only maintained a stockbroker account to hold my investments), or risk of a problem with the collapse of a broker etc. In the overall scheme of things, these were not big concerns. Traditionally, there have been few brokerages collapse in Ireland, while an annual cost is not an issue if I'm going to have an account regardless.
Just wondering, what is your preferred method of holding shares (for investment) here and why do you opt for the method you have chosen ?

Thanks.
 
Well the first question is do your brokers even hold the shares themselves??? At this stage the only broker I'm aware of that does this is Interactive Brokers. The others use various nominees and very of you'll end up with the same nominee regardless of which broker you go with.

One of the issues with keeping paper certs is that you also have to keep up with all the corporate actions etc.. Paying them €25 per year is a small price for that.

I have not held paper certs in well over 20 years and I have no intention of doing so again.
 
Nominee a/c - with an Irish Broker may not be very safe - see the Morrogh debacle

Paper Shares - you get on the share register and get copies of all documentation including annual report and invite to AGM. However, broker may not sell your shares until he is in possession of the share cert.

Sponsored Crest - must the same as paper, but broker can sell instantly
 
Many thanks Wollie,

I tried a search before starting this thread but for some reason, that thread didn't turn up.

Anyway, great to have the link here now.
 
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