From TDA, How-to: Sell Rule 144 PAVC Restricted Shares through Ameritrade (TDA), for those who don't know all the details.
I just got off the phone with TDA talking with a young Gentleman who seemed very knowledgeable on how to sell the restricted shares through Ameritrade (You DON’T have to sell them though TDA, if you have the certificates in your hands, even if you held them in a TDA account previously). This is from him and not my instructions. Anything that he may have told me that someone feels is wrong, please don't blast me for it, but call TDA instead. Thanks. As a long-term shareholder, I am providing this as a courtesy for anyone who does not know this.
Conversion of Shares
IRA Shares are left in your account after conversion, as it would count as a distribution if they sent the shares to you and they don't want to deal with the paperwork involved with that. Non-IRA shares will be sent to you in certificate form. As most of you should know by now, shares will be converted 0.462320850 restricted shares of Paivis Corp. (PAIV) for every one share of JPHC. This is how the email reads. I forgot to ask him if they would really say PAIV or PAVC.
Unless otherwise noted, this applies to selling them after 1 or 2 years.
1) First and foremost on selling the shares, you can only sell them through TDA from a Margin Account. If you do not have a Margin Account, you can open one with a $2,000 minimum deposit, or convert an existing account with at least $2,000 balance to a margin account. (After you sell the shares, you can convert the account back)
2) TDA will charge you $250 to sell the shares
3) You have to fill out about 7-pages of paperwork to register the shares and send the endorsed (Over to TDA) certificates and the paperwork to TDA. Once they receive them, the processing by TDA won’t be completed for 4-6 weeks (send to TA, get them back, etc.), but you CAN request to sell them during that time.
4) You can ONLY sell them through a TDA broker, over the phone, or I guess in person.
5) After registering the shares, the terms of selling them are:
After 1 year: you MUST sell them. You CANNOT hold them in your account. You have 90 days to sell them, after which time you don’t sell them, they will be returned to you in certificate form. If you want to put them up for sale them again, you have to do this all over again, including the paperwork and $250. If you sell part of them, I think he said the remaining portion are returned to you in certificate form and the previous applies. I’m not sure if the 90 days starts before or after the 4-6 weeks.
After 2 years: they become free trading shares and you can sell them whenever you want, however, all of the above (fee, broker, margin account) still applies, with the exception that there isn’t as much paperwork. He said that TDA would usually just accept the endorsed shares.
6) To receive your funds after you sell the shares, you have to call TDA and tell them you want to “Clear and Deliver” the shares I just sold of Paivis.
Now, if you don’t want to deal with TDA, you can always deal with the Transfer Agent yourself and sell them through whomever you want. You cannot sell them though the TA.
I hope this helps at least one person understand this besides me.
GLTA
Your vocal vociferations are entirely too copious for my diminutive comprehension.
