How Do You Sell Stocks Without A Brokers Letter Of Instruction?
In today’s centralized electronic stock trading environment, shares are usually exchanged in the open market with a broker’s letter of instruction. Brokers have vested interests, in the form of commissions, and have worked to become the main intermediaries in executing stock sales. However, there is one way that a stock can be sold without a letter of instruction, an off-market sale to another party. While an off-market sale may involve some fees it is often costs less than what a broker would charge. The key elements are finding someone interested in purchasing the shares, agreeing on terms and determining from the company’s transfer agent the process to transfer shares to a new owner. Find a buyer willing to purchase the shares. You can often find a buyer among your family, friends or social groups. Be prepared to discuss why you are selling and why it is a good buy for the person. It’s important to discuss and agree on terms in detail, including price, method of payment, and how soo
