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A Quick Guide on Issuer-Sponsored Shares and How to Sell Them

You are currently viewing A Quick Guide on Issuer-Sponsored Shares and How to Sell Them

When it comes to shares, there’s a lot of information to learn. Issuer-sponsored shares can be a helpful investment to have on your side. These are shares that are managed by the issuer through their own Share Registry. They can be traded with any brokerage, provided that the conditions for trade are met. These shares are given their own Security Reference Number for easy identification and tracking, too.

Most people are familiar with broker-sponsored shares, which are issued through the main CHESS exchange and sponsored by stockbrokers. On the other hand, issuer sponsored shares are held in separate registries and can be identified by the SRN, which typically starts with the letter “I”. The good news is that since you can sell these shares through any broker, you’ve got plenty of options.

Today, many people are choosing online brokerage sites as opposed to a private broker when they want to sell their shares. Issuer-sponsored shares can also be sold on these sites, so long as they’re declared as such and you can provide the SRN for reference. Different sites might have various trading and conversion protocols to follow with different types of shares, including the conversion to CHESS when necessary.

You can sign up for an account with these sites and input all of your personal information. You will need to confirm your identity and provide them with the information regarding the shares that you wish to sell. If you don’t have the information or think that you’ve got lost shares out there, they can often help you find them for a nominal fee.

Once your shares are located and valued, you’ll be able to determine which to sell and which to keep. Usually, these transactions are smooth and quick, as these companies have been built to make trading easier and more accessible for the average person. The Australian Securities Exchange has specific rules and requirements for many non-traditional shares, so it’s always best to work with professionals to make sure that you’re doing things the right way, including with issuer sponsored shares.

Calculating shares
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There may be some cases where, after finding and valuing your shares, you decide to hold onto them. That’s fine too. You can leave them as they are and come back to them later. Just know that when it comes to issuer-sponsored shares, it’s no more difficult than any regular transaction as long as you’re working with the right brokerage site.

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