DTCing all me and my wife's stock from stock options, espp shares, private investments, etc into other brokerage accounts
FLU – Can you please explain this in some detail. I too may like to do this.
Simple.
1) I transferred (or in the process of transfering) all stock electronically to other brokerage firms I have. There are two types of transfer. One is called a DTC, the other is called an ACAT. On typically is charged using one or the other. Typically DTC is free, ACAT isn't. DTC is a request from the "FROM" brokerage and pushed to the "TO brokerage". As far as cash, I have a bank checking account linked to etrade, so I wired all cash held in money markets out to the savings.
2) I'm trying to get the other brokerage firm (schwab and ameritrade) to register the stock in my name. I believe brokerage firms usually don't register in your name, but street name. However, this might not happen.
3) #2 doesn't work, I'm going to ask my brokerage to send me the actually stock certificates for stock that I plan on holding for a long time.
4) There's nothing you can really do about stock options. Typically your company only designates 1 stock option administrator. But, it's not really an issue because the stock options aren't worth anything until you exercise, and the company you work for should have records of that.
5)ESPP shares are similar to normal stock, except for a handful of anal companies…. you can't move the shares out unless you terminate the company.. You can sell the shares and move money out, but not physically move the shares). The reason being is when you sell espp shares (ie shares purchased with an employee stock purchase plan which gave you a discount off the purchase price), part of the profits needs to be reported on W-2 as income and part is short or long term gains. To simplify paperwork, some companies put restrictions require you to trade in the designated brokerage firm so that the brokerage firm can adequetely report back to the company when you sell those shares so that your company can properly send you a w2. However, most companies don't do this..They basically let you do whatever you want, and you are responsible for reporting ESPP sold shares appropriately as income and/or cap gains. Last time i checked, companies like Qualcomm, Yahoo, Symantec don't have this issue. W2 reporting for ESPP transactions is all your responsibility, so there aren't restrictions on DTC or ACAT transfers.
6) Some stock are restricted stock (particular if you just ipoed or private equity stock). For that, call etrade for details. Fortunately, I found out that life restricted stock at Schwab and not etrade so I don't have that issue (yet).
