Do you want to sell some of your shares and stocks quickly?
Maybe you have an inclination that their value might fall soon. Or possibly you are experiencing hard times and want to free up some capital. Perhaps you just want to simplify your investments and put all your money in a high-interest bank account.
Whatever your motivation for selling, you'll no doubt have plenty of queries running through your mind.
To help you navigate this process, we've compiled this guide on selling shares quickly.
Hopefully, it will help you negotiate the act of selling them in a stress-free and straightforward way.
What type of shares have you got?
Before you can sell your shares, you’ll need to determine what type you have and where they are being held.
Typically, shares can be CHESS-sponsored or issuer-sponsored. It is an important distinction to know what type yours are, as that will determine how they can be sold. Once you know how to sell IAG shares quickly, or any other equities for that matter, it’s easy to cash in.
CHESS-sponsored shares
CHESS is an acronym for Cleaning House Electronic Sub-register System. This is a platform used by the ASX to register all shareholdings and manage individual trade settlements.
This means that whenever you purchase or sell shares, the ASX has on record your ownership or relinquishing of the shares directly.
If you have CHESS-sponsored shares, then the good news is that they are the most common and easiest type to sell.
You can choose to sell them via the same broker you purchased them from. Alternatively, you may decide to trade the shares off via a different broker.
Should you decide to do the latter, then you might need to fill out a transfer form with your new broker and get in touch with your old one to arrange for the shares to be moved on.
When the transfer is complete you will be able to place an order with your new broker or online share trading platform to sell them.
Issuer-sponsored shares
By contrast, issuer-sponsored shares are managed by the organisation that issued you the shares via its Share Registry. The easiest way to determine if you have issuer or CHESS-sponsored shares is to check your statement's reference number. If it starts with an 'I' then the shares you have are issuer-sponsored.
You can sell these types of shares through a broker or share registry.
There are several services that can help you do this through the registry, and you will need to provide them with your SRN (reference number) and various forms of identification. This might be a process you can do online, although there are usually fees involved in the transaction.
The process of selling issuer-sponsored shares via a broker is pretty much the same as it is for CHESS-sponsored shares. That said, you should be aware that some online share trading platforms and individual brokers might not facilitate one-off transactions.
Selling shares you own directly
Before you try to sell your shares you'll need to establish whether you own the shares directly. If you do, it will affect the way you can sell them.
For example, if you directly own shares, you will be able to sell them either through a broker or by managing a trade through your preferred online share trading platform.
However, any shares you might own via a managed fund are referred to as indirect shares. If you want to sell them you will need to do so in your managed fund. This could involve withdrawal fees or other associated costs.
You should also make sure you retain a copy of the receipt for the transaction for the purposes of tax.
Buybacks
If you want to sell your shares quickly, you should enquire into the possibility of the company you bought them from buying them back off you. Occasionally, they may be open to doing this because they want to improve their financial ratios or re-invest in their business.
Usually, if a company is willing to buy back the shares from you, the brokerage fee is waived.
Selling inherited shares
If you received your shares via an inheritance from a deceased family member, the process should be relatively easy if the ownership of them was transferred into your name.
That said, if the shares were kept in the estate of the deceased person, you may need to provide authorities with documentary proof, including a death certificate and photocopy of the probate.
Although you won’t be required to pay tax on shares you inherited. If you sold them, you might be subject to capital gains tax.
Selling as a company
If you are a company that is selling shares you’ve bought from other companies, the process can be a bit more difficult.
It is worth asking your accountant for more specialist advice before you proceed as there are distinct pros and cons.
