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Transferring shares for online trading??

Discussion in 'Shares' started by johnnyb, 1st Jun, 2006.

  1. johnnyb

    johnnyb Well-Known Member

    16th Aug, 2005
    Hi All,

    Share trading is very new to me so please excuse my ignorance.

    Suppose I have bought some pre-IPO shares in a company (eg, the NI which many of us probably have). I would have a bit of paper in my file, the share certificate, which tells me how many shares I own.

    Now, suppose the company successfully lists on the ASX (no, I don't know any more than anyone else about NI listing any time soon:eek: ). What would I have to do if I then want to sell some or all of my shares?

    Assume that I have set up an account with an online broker like Commsec, and I have been registered in something like the CHESS system. Would I need to provide Commsec the share certificate, they would then enter the info into CHESS, and my shares would then appear in my online trading account for me to trade like any other stock?

    Can anyone shed any light on this? Thanks.

  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    9th Jun, 2005
    Sydney, Australia
    At IPO you would be issued with documentation that contains a Securityholder Reference Number identifying your holdings with the ASX.

    At this point you are "Issuer Sponsored" for your shares.

    You can then either do a "guest" trade somewhere like Commsec to sell some (or all) of the shares, or you can transfer your shares to be "Broker Sponsored", in which case it will be your broker (eg Commsec) who manages them for you.

    The transfer to broker sponsored is really easy - a simple form sent with a copy of your holding details from the share issuer, takes a few days to process. Naturally you need to have a broker account first - but that's pretty easy too.