How Do I Redeem Stock Certificates Quickly?

There are new entrants into the stock market everyday all seeking to earn their fortunes. With the volumes of information about Wall Street to be digested, many are left with many questions. What is a stock? How do I buy one? How do I sell one? How do I redeem stock certificates?

A stock is a simple concept. When you buy a share of stock you are purchasing ownership in that company. Essentially, you are becoming a partner. Now, not a partner with full rights like you would have in a small company you'd form with a friend, however ownership of a share conveys to you pro rata equity in the venture as a whole.

How do you buy a stock? It used to be there were limited ways to purchase shares of a stock you desired. You had to go through a full service broker paying very high fees. This is no longer the case. There are brokerages of every type and flavor available today. Most are online and allow for trading of any stock, option and even currency under the sun.

Most important to look for are low commission rates. These can come in varying components but most often are either a flat fee or an amount per share. Sometimes a broker can charge a combination of both. Additionally, many brokers charge various and sundry fees for depositing your money, taking it out, or not making sufficient trades. Read all the fine print before opening your account.

Once you've selected your account and placed your first trade the question becomes how you sell your shares. Hopefully they have gone up since you bought them yielding you a nice profit. Selling a share is as easy as buying it. You simply enter a sell order instead of the buy order you entered initially to establish your position.

Your shares are evidenced by what are called stock certificates. These are held safely by your broker. You never have to touch them. Through your fees you are paying for the service of your broker holding these on your behalf and then forwarding them to the party to which you sold your stock. Why go through all this hassle yourself?

There is really no reason you would need to take physical possession of your underlying stock certificates. Many consider them relics of the past in today's electronic world. Let them safely reside in the safes at your broker and concentrate on the important aspects of due diligence and analysis towards crafting your ideal portfolio.

There is no such thing as a bad question. Whenever you need to know something you can ask an expert or look it up online. Next time you ask, "how do I redeem stock certificates", you know the simple answer is to sell your shares the same way you bought them. The cash will show up in your account just fine.

Many people become confused on what it means to redeem a stock certificate. To find out more, visit http://www.StockMarket4Beginners.com where you'll find this and much more, including other stock market basics.

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