Direct means exactly what it says. You get a statement direct from the transfer agent only. Your instructions go to the transfer agent. The transfer agent has no legal interest in your shares. The transfer agent simply records your name address and shares owned officially.

The cost of the transfer agent if handled properly is absolutely minimal ($10?). You never mix your broker with the direct registration transfer agent except to order the broker to put your shares into direct registration. You do not give your broker any further instructions.

Now if you want your certificates you inform the “company you are invested in” and generally without charge your shares arrive at your home in only days, not week or months. It does cost $500 if your company does not participate with Computershare. This $500 has been THE greatest inflation since 2006 when across the board it cost only $10.

If you want to sell them immediately you instruct the transfer agent of your brokers number and your account number and generally on the same day your shares are back into your brokers account for you via simple computer instructions one to the other. If for some reason minutes are important to you, you call the transfer agent and instruct your shares be liquidated to the transfer agent who is not a broker but it will be a market order.

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Got this quip from Jim Sinclair site today. I know it has been discussed many times before and does appear too complicated for many to do or is it really this simple.? I often think that when the system freezes up and the bank holding my stocks will say sorry and poof its’ all gone. Any advice or experience advice out there.