TDSC Stock Certificate Deposit Rules & Notes

Note:  Penson is the clearing firm for Track Data Securities Corp.

 1) No restricted stocks are allowed to be deposited into our customer accounts (certificates that bear a legend that it is "restricted " or "that it is subject to the securities act of 1933 etc."). This applies to 144 restricted stocks that have passed the waiting period, too. You may contact the Transfer Agent or the issuing corporation to issue a new certificate without the legend & then deposit the new legend free stock certificate.

 2) No third party deposits of certificates are allowed.   We consider third Party deposits when certificates are made out to a name other than the name on the account. 

Examples of Third Party Certificates: 

Certificates in the name of "John Doe” to deposit into an account in the name of " ABC Co." Certificate in the name of "John & Mary Doe" to an account in the name of "John Doe".  

These are not acceptable.

Examples of Likewise Titled Accounts (non-third parties):

Certificate in the name of "John Doe” to an account in the name of  "John Doe”

Certificate in the name of " ABC Co." to an account in the name of "ABC Co."

Certificate in the name of "John & Mary Doe" to an account in the name of "John & Mary Doe.”

These are acceptable. 

3) Do not send in a Certificate unless your account is enabled for trading. In case of a new account, you should first receive an email titled "Your myTrade Account Has Been Enabled".  This is sent to our customers, once the completed new-account paperwork is reviewed & signed off by our new accounts department.

4) A certificate issued to the name of an entity (Corp., Partnership etc.) would require a current Penson Entity Agreement on file (dated less than 6 months ago).  Blank forms are provided on the forms page. In case there is only one signer it should state so specifically on the form.   

5) For depositing a certificate that has only one signer from the issuing company on the certificates. Penson may require that you submit the attached document titled “Corporate Resolution- One Signer”, to be completed & signed by the issuing corporation.

 6) For any certificate for over 1 million shares:  Penson will require that you submit the attached document titled “Corporate Resolution- Over 1 Million Shares”, to be completed & signed by the issuing corporation.  

7) There is a $50 processing fee that Penson will charge your account for every certificate deposited. 

8) Although you may count the value of the stock towards the minimum initial deposit required for new accounts, you are required to deposit additional cash in the amount of $50 per certificate to cover the Accounts that do not have sufficient funds to cover processing fees will have the certificates returned to the address on record.

 9) Once a certificate is received, an email is sent to our clients within 24-72 hours indicating any paperwork that is still required to process the certificate.  If Penson does not receive the required documents within approximately 10 days, the certificate will be sent back to the address of record on the account.

10) Once Penson receives the certificate along with all of the required documentation, the Certificate goes through a several step process. 

It needs to first clear into Penson's Street Name & then into DTC Street Name in order for you to be allowed to trade them.

This can take anywhere from several weeks to as long as it does, depending on the Transfer Agent, the Issuing Corporation,  DTC, & Penson.

11) You have two choices in regards to depositing stock certificates.

     A - You can either sign the back of the stock certificate and put down your penson account number and send the certificates overnight via FedEx or Ups or other express service directly to Penson at the following Address:

Penson Financial Services Inc.

1700-Pacific Ave.
Suite # 1400
Dallas, TX. 75201
ATT. Peggy

    B-You can just send the stock certificates with your Penson account number alone (no signatures) in one envelope & the Stock Power in another envelope, both to the address .  Please sign the stock power & write the account # on it. Please also enclose a note for which stock the Stock Power is.