Shares for Dummies [One off Selling of Parcel]

[Denali]

Shares for dummies question.

I have a bundle of shares but never purchased/traded before - how do you begin to sell them? I understand there will be capital gains but what else should I know about? Any advise and thanks

 

[Pushka]

Shares for dummies question.

I have a bundle of shares but never purchased/traded before - how do you begin to sell them? I understand there'll be capital gains but what else should I know about? Any advise and thanks

So who owns them then? Its all online now. Brokerage fees also.

 

[TheRealTMA]

Shares for dummies question.

I have a bundle of shares but never purchased/traded before - how do you begin to sell them? I understand there will be capital gains but what else should I know about? Any advise and thanks

Sign up to the share trading options with your bank, such as NAB ShareTrade etc, add the shares, sell them.

 

[Denali]

So who owns them then? Its all online now. Brokerage fees also.

I own them. So I just google a sell my shares type site and read the fine print?

 

[Pushka]

I own them. So I just google a sell my shares type site and read the fine print?

Your bank will likely offer the facility to trade. So, you'll likely need a trading account. Or maybe stockbrokers still exist? Do you get dividend advices? Your details they will need will be on there if it still have paper versions.

 

[prozac]

I own them. So I just google a sell my shares type site and read the fine print?

I have a conservative broker if you would like someone to give advice on buying and selling and do the transaction. He is more likely to talk you out of buying than getting you to buy. He is our age, well my age, maybe a bit older than you.

 

[Denali]

Your bank will likely offer the facility to trade. So, you'll likely need a trading account. Or maybe stockbrokers still exist? Do you get dividend advices? Your details they will need will be on there if it still have paper versions.

Yes, we have all the statements/advices ect as we knew one day we will sell them and need to pay tax so needed the documents.

We thought we would sell them for a nice holiday one day but looks like its going to pay for the blinds/curtains, garage fitout and new fences instead

 

[TheRealTMA]

Yes, we have all the statements/advices ect as we knew one day we will sell them and need to pay tax so needed the documents.

We thought we would sell them for a nice holiday one day but looks like its going to pay for the blinds/curtains and garage fitout instead

Blind sided so to speakl!

Note: For reference most bank sharetrade platforms give you a bunch of free trades when you sign up.

 

[RooFlyer]

Shares for dummies question.

I have a bundle of shares but never purchased/traded before - how do you begin to sell them? I understand there will be capital gains but what else should I know about? Any advise and thanks

As others have said, just sign up online to your Bank's share trading platform. That way you shouldn’t need to go through the torturous ID process for setting up a new account with a stockbroker for instance.

You link your bank account to the sharetrading account and the proceeds go through to your bank account less brokerage ( trading) fees, but you might get a few trades free at the start.

Dont worry about CGT or anything when setting up the account & trading - it’s the a matter for the accountant at tax time.

Setting up the trading account, it may ask you to input the purchase value, but that’s not really important. That’s just so they can show you today's gain or loss compared to "acquisition“.

In selling the shares, you will be asked to set a price. You can either fix a price per share or just accept the best available at the time. If you fix a price per share and they drop below that, then they won’t sell. If you specify best available for them, they will sell in price order of all orders placed for the stock and you’ll get whatever price they are when it when it comes to your order.

I think you’ll also be asked how long you want the order to be placed for - I think it’s either for the day or you specify a period. If you’re worried about a falling price below what you want then you might only want them on sale for a day. But if you don’t care, really then, just keep the order open.

 

[RooFlyer]

@Denali . I just thought also. You may be asked if they are CHESS shares or 'issuer sponsored'. I THINK if they are issuer sponsored, you might need to do something to get them onto the ASX CHESS system.

Perhaps someone else can comment on this. It’s been a very long time since I’ve done it.

 

[TheRealTMA]

@Denali . I just thought also. You may be asked if they are CHESS shares or 'issuer sponsored'. I THINK if they are issuer sponsored, you might need to do something to get them onto the ASX CHESS system.

Perhaps someone else can comment on this. It’s been a very long time since I’ve done it.

The share trading bank platform can help with all this for free.

 

[MARTINE]

The share trading bank platform can help with all this for free.

Yes
If - for example you use commsec - they arrange your CHESS sponsorship
Depending upon how many shares you have if you go into company website they can arrange sale of small parcels

 

[Major]

There is also an AFF share discussion thread which may provide further answers

AFF Member Stock Discussion

In light of the recent thread on the upcoming IPO of Latitude Financial, I thought that a thread on stock tips might be appropriate. I am sure many members here play the market. I remember reading about the members who got Qantas for under a dollar, the threads about using IG Share Trading to...

www.australianfrequentflyer.com.au

 

[SYD]

The share trading bank platform can help with all this for free.

Commsec and Nabtrade (and most online brokers) are free to sign up, but do have brokerage fees that vary by size of sale/purchase. But relatively low compared to traditional brokers. Of the order of $20 v $100. But that brokerage fee is part of your cost base for calculating CGT (or loss). So don’t get too hung up about it for a single trade.

 

[Rich]

You are right about CGT, you will have to pay at tax time, if there has been a CG that is. Provided they were purchased over 12 months ago the tax rate is halved.
You said you've never traded before. Does that mean you received them through work? Or perhaps you inherited them. If you inherited them, then you will need to know (at tax time) the price originally paid by the deceased and approximate purchase date.

 

[SYD]

You are right about CGT, you will have to pay at tax time, if there has been a CG that is. Provided they were purchased over 12 months ago the tax rate is halved.
You said you've never traded before. Does that mean you received them through work? Or perhaps you inherited them. If you inherited them, then you will need to know (at tax time) the price originally paid by the deceased and approximate purchase date.

Many of us have / had shares from the ‘90s through privatisations and demutualisations (eg CBA, TLS, QAN, NRMA now IAG etc). They would be issuer sponsored if never transferred to a CHESS broker sponsored account.

 

[MARTINE]

https://www.asx.com.au/content/dam/asx/documents/unlinked-docs/fact-sheet-chess-sponsored-and-issuer-sponsored-holdings.pdf

This may help.
Its actually a very easy process.
Good luck @Denali — even with CGT — if you managed to get CSL COM as issue you can pave the driveway with gold!!

 

[Denali]

Many of us have / had shares from the ‘90s through privatisations and demutualisations (eg CBA, TLS, QAN, NRMA now IAG etc). They would be issuer sponsored if never transferred to a CHESS broker sponsored account.

Yes, this is how I got the shares and Ive been getting more shares each year, instead of a dividend or as part of the dividend nominated for more shares instead of cheque. Now its a nice little bucket that we can utilise for the new home build

Thank you, a bit of reading to understand more/how to do this.

 

[SYD]

Yes, this is how I got the shares and Ive been getting more shares each year, instead of a dividend or as part of the dividend nominated for more shares instead of cheque. Now its a nice little bucket that we can utilise for the new home build

Thank you, a bit of reading to understand more/how to do this.

Hot tip. If / when you open an online broker account, make sure the account name matches exactly the same as on your existing share holding statements. That will ensure seamless transfer from ”issuer” sponsor to “broker” sponsor. it should only take a couple of days to transfer (there’ll be a form to fill in and submit).

Once they appear in your account, press “SELL” if you’re happy with the market price or as mentioned earlier, you could set a price and wait.

 

[MARTINE]

Hot tip. If / when you open an online broker account, make sure the account name matches exactly the same as on your existing share holding statements. That will ensure seamless transfer from ”issuer” sponsor to “broker” sponsor. it should only take a couple of days to transfer (there’ll be a form to fill in and submit).

Once they appear in your account, press “SELL” if you’re happy with the market price or as mentioned earlier, you could set a price and wait.

.. and remeber with an online account you can also set a price at which you want to sell
At market is what you get when you press sell as the current price given to you
You can look at the prices over a period and put in a price below which you wont sell. It can be for a day or month
Good to know