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Client sues over lost stock certificate,

September 12, 2014

Client sues over lost stock certificate is a story in the Financial Post (FP2) from Wednesday, September 10, 2014, Written by Barry Critchley (FP2). A client’s $780,000.00 worth of stocks were escheated to the State of Delaware and lost in the shuffle. I am mentioning it in my blog to warn my readers to stay vigilant because it almost happened to me with my Disney stocks Direct, 1) Don’t buy your stocks in the form of stock certificates that may be “lost” when your company is being bought by another company. The incentive of people involved in the process of company restructuring to protect your assesses is reduced in the shuffle because of reduced supervision, 2) Don’t buy shares and let them “sleep” there in a semi-dormant account. Shares are like bills on “money tree,” the tree dies if you don’t fertilize and water it with attention. I bought Disney shares direct and left them dormant to grow for 3 years. I received a letter from Delaware informing me that my shares will be escheated to the State of Delaware within a few days if I don’t show share activity (the whole idea is probably unconstitutional). I immediately sold all my shares in Disney direct (it’s their loss for not fighting this unethical and unfair law against busy investors who “forget” for a while to buy or sell shares in an account.

3 Comments leave one →
  1. June 11, 2015 1:09 pm

    I’m amazed, I must say. Seldom do I encounter a blog that’s equally educative and interesting, and let me tell you,
    you have hit the nail on the head. The problem is something that too few people
    are speaking intelligently about. Now i’m very happy I stumbled across this during my search for something regarding this.

    • June 26, 2015 1:19 pm

      Thanks, I am so busy with traveling but for insightful people like you I will try to post more often. Here is one I just thought of: You want to be a millionaire, would you do what it takes?

  2. April 7, 2016 3:07 pm

    The government should not be allowed to sell your stock. This is legal theft by government crooks. The same thing happened to us with stocks we bought in the 80’s and put in a file drawer. We lost 75% of the 10’s of thousands of dollars they should be worth now because the state sold them in the early 90’s. I would also like to see such a case go to the Supreme Court.

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