What To Do With a Physical Stock Certificate

A stock certificate issued by a company proves that you are a shareholder, but the physical pieces of paper are quickly becoming inconvenient in today's digitized world. What can you do? In most cases, you can convert your stock certificate to an electronic record of ownership through the Direct Registration System (DRS).

Why electronic ownership might make sense for you

Converting your certificate to an electronic form of ownership means you can see those Disney shares you got from your grandparents, for example, right in your investment account rather than having to check that valuable piece of paper you may have tucked away.

Having your shares electronically booked means:

• Quick and easy transfer of ownership. If you want to sell your stock, you don't have to clear your shares for transfer of ownership ahead of time.
• Security with less cost. No more keeping your share certificates under lock and key, which means potential cost savings.
• Increased transparency. The market value of your shares, dividends and corporate actions such as stock splits will show up right in your investment account.

How to convert your paper-based certificate to a digital record

First, you'll need to contact the company's transfer agent (found on either the face or back of your certificate) and follow their instructions. You can also find this information on a company's website under Investor Relations, or try an online search by entering the company name and "transfer agent."

Once you know the transfer agent, here are the steps to follow:

• Download and complete the DRS Transaction Request Form from the transfer agent's website;
• Submit the form, along with your original physical certificate(s), to the transfer agent as per their instructions;
• Once your share certificate is converted, a DRS statement will be mailed to your address confirming the shares are registered to you and on the books of the company's transfer agent;
• To authorize a digital transfer to your account, log into the RBC Direct Investing site. Find the "Letter of Authorization to Transfer Security to Non-Registered Account" under My Portfolio, Forms & Agreements, Transfer from Another Institution. Complete and sign it;
• Please call RBC Direct Investing at 1-800-769-2560. A representative will send you a secure email to which you reply by attaching both your DRS statement and letter of authority. In most cases, you can expect to receive the shares in your RBC Direct Investing account within three to five business days.

Things to note:

• Electronic booking of shares can only be made in non-registered accounts (you can contribute them to a registered account after the fact, if you wish)
• Some companies do not participate in the Direct Registration System and therefore a DRS statement cannot be produced. You can contact the transfer agent to request that your "certificated" shares be moved to "book" shares and electronically transferred to your non-registered account.