Showing posts with label charges. Show all posts
Showing posts with label charges. Show all posts

Tuesday, August 25, 2015

How to Check the Stock Value of Quarantine Stock


Check the purchase order or invoice for the quarantine stock. Quarantine stock is normally valued at the total cost of acquiring the good, just like any other inventory item. For a retailer, cost of goods is usually the wholesale price. If the business is a manufacturer, add in the value of direct labor allocated per unit to the purchase price of the raw materials used to make the item.
Add shipping charges paid when the stock was originally purchased. Allocate a portion of the freight costs on a per-unit basis. Suppose you want to quarantine an item that cost $20 and came in as part of a shipment of 200 units with a shipping cost of $100. Divide the shipping cost by the number of units to get a unit shipping cost of 50 cents. Allocate this amount and you have a value for the quarantine stock of $20.50.
Calculate the market value of the quarantine stock if it has lost value because it is obsolete, damaged or defective. Generally accepted accounting principles state that the market value of the quarantine stock may not be more than the net realizable value, meaning the price you can sell the item for minus disposal and carrying costs. Also, the write-down amount can’t be less than the NRV minus the item’s normal profit margin.
Call the supplier of the quarantined item and ask for the current replacement cost. Adjust the value of the quarantine stock to the lower of the replacement cost or the market value from Step 3.

Saturday, August 15, 2015

How to Cash an Old Stock Certificate (6 Steps)


Examine the stock certificate. It contains the information you need to find the company that issued it. You need the full company name plus the “CUSIP” number. The number is a unique identifier your broker can use to help track down the company, even if it now does business under another name. Also make a note of the owner of record and of the incorporation location (the state that issued the charter of incorporation).
Check financial websites such as Yahoo! Finance (which has business listings free to examine) or Dun & Bradstreet (which charges a fee), or even in your public library. If you find the company name listed as an active business concern, you’re well on your way.
Call or write the state agency in the incorporation state (usually the secretary of state) as a last resort. They will have records of the original articles of incorporation and can tell you if the company changed its name, moved out of state or is defunct.
Contact the company’s transfer agent if the business still exists. Transfer agents are firms that handle the stock certificates and transactions on behalf of publicly traded companies. Find out what their requirements are for you to transfer ownership of the stock to yourself and what documents are needed to verify you are entitled to the shares.
Follow the transfer agent’s instructions. For example, you may be asked for a copy of a probated will that names you as beneficiary. Once everything is in place, fill out the transfer of ownership form located on the back of the stock certificate and sign it in the presence of a notary public.
Send the stock certificate and required documentation to the transfer agent via certified mail. Once the agent credits the shares to you as a registered stockholder, call your broker or transfer agent and place a sell order for the shares to cash in that old stock certificate.