How do I sell shares?

[Mar]

I've got 109 shares in a company that's sitting at about $31 per share and have decided to sell them at their lowest point in their life which is stupid but I'm still making a profit on them since the company matched my purchases and I effectively got them for half price. How do I go about finding a broker to sell them and what are the normal commissions for a broker to take on a sale like this?

[broken_legs]

Originally posted by Mar
I've got 109 shares in a company that's sitting at about $31 per share and have decided to sell them at their lowest point in their life which is stupid but I'm still making a profit on them since the company matched my purchases and I effectively got them for half price. How do I go about finding a broker to sell them and what are the normal commissions for a broker to take on a sale like this?

Do you have certificates for the shares?

Are they at your bank?

Are they in some account with your work?

If they are held somewhere electronically than you can transfer them. If it's held in the states, it could be easier to get the shares certificated and mailed to you. Then you can take the actual physical paper to a bank or brokerage and cash them in.

For a one time fee you might get charged up to 45 dollars plus a %. Discount brokerage would charge around 30 dollars.

[Mar]

I've got a certificate coming in the mail. I can just take them to my bank? That sound easy.

[ExtraSlow]

Just checking, but is this for a publicly traded canadian company?

[Mar]

Originally posted by ExtraSlow
Just checking, but is this for a publicly traded canadian company?
Telus

[masoncgy]

By the way, you have to pay significant taxes on the sale of those shares as well... keep in that mind.

Though you haven't paid your taxes in 4 years, so I guess that is a moot point, eh? :poosie:

[Mar]

Originally posted by masoncgy
By the way, you have to pay significant taxes on the sale of those shares as well... keep in that mind.

Though you haven't paid your taxes in 4 years, so I guess that is a moot point, eh? :poosie:
Filed, not paid. I filed them last night and found out I get back $4500 for 2006, $1300 for 2007 and I'm still in the process of doing 2008. Should be another $1000 - $2000. Pretty easy house downpayment right there.

[masoncgy]

^ Good stuff. You know I'm just razzin' you for shits & giggles.. ;)

[Mar]

Originally posted by masoncgy
^ Good stuff. You know I'm just razzin' you for shits & giggles.. ;)
ha, I know. It's all good.

[06civic]

U cant just walk into a bank. you have to open an investing acct. We will pretend u deal with RBC. You have to open a RBC direct investing acct online first then mail your certificate to them. They will then cash it into your investment account. Normal trading fees apply.

[s2k_boi]

^ not necessary. If he doesn't intend to trade. Most institutions will do what they call a accomdation trade... one time scenario.

So talk to your bank, they should be able to accomodate that.

[06civic]

Originally posted by s2k_boi
^ not necessary. If he doesn't intend to trade. Most institutions will do what they call a accomdation trade... one time scenario.

So talk to your bank, they should be able to accomodate that.

But the thing is banks dont deal with stocks. If you were to go in an investing firm maybe. They dont even sell stocks they dont have the ability to do it.

[s2k_boi]

you are correct that banks don't directly deal with it, but every bank has there discount brokerage that they can ship the security to / trade it (ie. td waterhouse, rbc action direct, bmo investor line etc...) find out which one is able to do it. TD did it in the past, so check with your bank to see if they are able to do it.


Originally posted by 06civic


But the thing is banks dont deal with stocks. If you were to go in an investing firm maybe. They dont even sell stocks they dont have the ability to do it.

[TYMSMNY]

What's actually better is for you NOT to realize a gain (pay taxes on it right now), is that you can deposit this straight into your RSP account. Whether it be a RRSP, LRSP, or even a TFSA account, you can't deposit a certificate in. All you need to do is sign the back of the certificate or a "power of attorney" (which the brokerage can provide). This way you can hold it till your old and grey... or going through that midlife crisis.

This is done at the brokerage level of the banks. Asking the customer service rep. will get you some more info.

[TomcoPDR]

Try contacting Compushare http://www.compushare.com/ think they're the clearing house for privately held Telus shares. Or at least if you bought them when they IPOed under Alberta Government Telephone 20 some years ago.

[s2k_boi]

Originally posted by TYMSMNY
What's actually better is for you NOT to realize a gain (pay taxes on it right now), is that you can deposit this straight into your RSP account. Whether it be a RRSP, LRSP, or even a TFSA account, you can't deposit a certificate in. All you need to do is sign the back of the certificate or a "power of attorney" (which the brokerage can provide). This way you can hold it till your old and grey... or going through that midlife crisis.

This is done at the brokerage level of the banks. Asking the customer service rep. will get you some more info.

He can definatley do that, BUT he WILL realize the gains and be taxed as what you provided is incorrect information. If he/she deposits the shares into a RSP you better be damn sure you have enough rsp room as that counts as a contribution.... Here's the back up (although it's related to TFSA directly, same rules apply to RSP, only difference is that it's considered a contribution and they will get a tax receipt)

"You can also make “in kind” contributions to your TFSA, as
long as the property is a qualified investment*. You will be
considered to have disposed of the property at its fair market
value (FMV) at the time of the contribution. If the FMV is more
than the cost of the property, you will have to report the capital
gain on your income tax return. However, if the cost is more
than the FMV, the resulting capital loss cannot be claimed. The
amount of the contribution will be equal to the FMV of the
property."

Link : (page 1 - top right hand corner:

http://www.cra-arc.gc.ca/E/pub/tg/rc4466/rc4466-08e.pdf

[TYMSMNY]

Originally posted by s2k_boi


He can definatley do that, BUT he WILL realize the gains and be taxed as what you provided is incorrect information. If he/she deposits the shares into a RSP you better be damn sure you have enough rsp room as that counts as a contribution.... Here's the back up (although it's related to TFSA directly, same rules apply to RSP, only difference is that it's considered a contribution and they will get a tax receipt)

"You can also make “in kind” contributions to your TFSA, as
long as the property is a qualified investment*. You will be
considered to have disposed of the property at its fair market
value (FMV) at the time of the contribution. If the FMV is more
than the cost of the property, you will have to report the capital
gain on your income tax return. However, if the cost is more
than the FMV, the resulting capital loss cannot be claimed. The
amount of the contribution will be equal to the FMV of the
property."

Link : (page 1 - top right hand corner:

http://www.cra-arc.gc.ca/E/pub/tg/rc4466/rc4466-08e.pdf


Thanks, I quite well understand what needs to be done when he deposits it into a RSP account. I'm suggesting this be an alternative to his already semi-made up mind as he's upset he HAS to sell at this low point in share price. Obviously he'll need to do several things before making a deposit but it is an extra choice he has.

If he makes a deposit today, he can carry back or forward the contribution. It'll be somewhere on your CRA website.

[broken_legs]

Originally posted by TomcoPDR
Try contacting Compushare http://www.compushare.com/ think they're the clearing house for privately held Telus shares. Or at least if you bought them when they IPOed under Alberta Government Telephone 20 some years ago.

Too Late. From the sounds of it the shares have been mailed in certificate already.

Literally all you have to do is walk into a bank with the certificates, sit down and talk to someone sign the back and you should be done.

Keep in mind that if you were buying those shares at a discount from Telus while you worked for them you probably had a taxable benefit added to your employment income each year equal to the amount of the discount.

So you could actually be losing money by selling at this low price.


ie you paid 50% less than the closing price on a certain day. You bought 10 shares at 10$/share when they were trading at 20$ per share on the open market. So the shares were worth 200$ but you only paid 100$, BUT you probably had an adjustment to your employment income (check your T4) equal to that benefit of 100$. If you're in the top tax bracket you just paid an extra 40$ in income tax.

Sooooooo

The shares are only making you money if you can sell them for more than 140$ or 14$/share - If you sell them at 10$ you're not breaking even, you're actually losing $40.

Make sense? :nut:

[Mar]

Ya, www.computershare.com is where I used to check my balance every few months and one day when I logged on it said my balance was 0. I was freaking out but when I phoned they said they mailed the certificate to an old address of mine so I'm just now getting it to my new address and dealing with it when I receive it.

And I got lots of room in my RRSP contributions, I just started paying into them for the first time of my life last Friday. I'm now a RRSP owner! :clap:

If I roll them into my RRSP, I heard something where you can roll your RRSP into your mortgage tax free or something. Maybe I heard wrong, my girlfriend's a financial analyst for Scotiabank and sometimes when she talks......:zzz:

[ExtraSlow]

You can withdraw from your RRSP to buy your first house. Once you ahve a mortgage, that progam can't help you.
It's called the Home Buyers plan. I used it.

[Mar]

Originally posted by ExtraSlow
You can withdraw from your RRSP to buy your first house. Once you ahve a mortgage, that progam can't help you.
It's called the Home Buyers plan. I used it.
I don't own a home. Does it matter if only she does? Can I roll my RRSP over (all $200 of it) if I don't already own a home?

Oh and the shares aren't being sold now, I decided not to cash them. Got money from elsewhere.

[TYMSMNY]

Scotiabank doesn't have financial analysts.

You can borrow from your RRSP as an interest free loan paid over the next 15 years. You are allowed a maximum loan of $25,000 and doesn't matter if your GF has hers or not. Even if you decided to get married, you still have the option to use it.