How to Redeem Stock Certificates (5 Steps)

Identify the stock certificates you wish to redeem. If they are the only stocks in your possession, this will be an easy task. However, if you only wish to redeem specific stock certificates, it will be necessary to compile a list of the certificates you wish to sell, along with identifying characteristics, such as ID numbers, issue dates and other information that your broker can use to initiate the transaction.
Notify your broker that you have stock certificates you wish to redeem for cash. Your broker can assess the current status of the stock and advise you on any options you may have that will help you earn the most return from the sale.
Determine the minimum price that you are willing to accept for the stock certificates. While your desire is to sell them at the current market price, that is not always a possibility. There is the chance that the demand for the shares will not be particularly high. When this is the case, you may have to sell the certificates at a discounted price in order to attract potential buyers.
Finalize the details of the transaction. Once a buyer has been found and the purchase price agreed upon, authorize your broker to accept the offer and begin processing the transaction. Generally, it is possible to complete the transaction in one trading day, unless the purchase is made late in the day. When that is the case, it may be the following business day before the transaction is fully completed.
Designate the mode of payment. A quick and secure method is to have the payment for the stock certificates electronically transferred into the bank account of your choice. The seller can either forward the payment to your broker, who then arranges the transfer or send it directly upon receiving the hard copy or electronic copy of the stock certificates that were purchased.

How to Become a Private Stock Broker (5 Steps)

Begin in high school by taking mathematics and economics courses. Being a successful private broker requires years of practice that allow one to develop insights into how the markets operate under various conditions. Starting at an early age provides more time for these skills to develop. Join your high school's investment club, if one is available. Use pretend money noted on paper to practice different investment strategies. These activities will help develop the skills you will need as a private broker.
Obtain a college degree. Most private brokers obtain a degree in finance or economics. A Bachelor of Science degree is common, although staying long enough to obtain a Master's degree will make a significant difference in the amount of money you will earn in a post-graduate world. Those who wish to entertain corporate clients might also wish to obtain a secondary degree in business administration.
Obtain proper licensing to conduct business as a private broker. The first step is to pass the General Securities Registered Representative Exam. More commonly referred to as the Series 7 exam, this test is administered by the National Association of Securities Dealers, and is required to be employed as a broker anywhere in the United States. Many individual states will require additional credentials. To meet the criteria of these locations, you will also need to pass the Uniform Security Agents State Law Exam, also known as the Series 63 exam, and the Uniform Investment Advisor Law Exam, also know as the Series 65 exam.
Apply to a brokerage house to build experience and clientele. Brokerage houses often hire large numbers of recent graduates with the expectation that many of them will not last more than a year under the pressure of the job. Working for a brokerage house allows you to use name recognition to build a portfolio of clients. It also gives you real-world working experience that will help prepare you for any exams that are required to obtain additional accreditation.
Start a private practice. After working at a brokerage house, you will eventually reach a point where you have learned the skills that are required to operate independently. Reach out to the clients and contacts that you have made while working at other companies, inviting them to look over your new practice. Operating your own private practice allows you to continue offering the same brokerage services to clients, with the primary difference being that you will keep a full portion of the trading profits rather than being paid a commission from another brokerage house.

How to Calculate a Common Stock Required Rate of Return

Determine a stock's beta, a measure of its market risk. A beta of 1 means the stock has the same risk as the overall market, while a beta greater than 1 means the stock has more risk than the market. You can find a stock's beta in the quote section of a financial website that provides stock quotes. For example, use a stock's beta of 1.2.
Determine the market's risk-free rate of return---the return you can earn on an investment with zero risk. Use the current yield on U.S. treasury bills. The U.S. government guarantees these investments, which makes them virtually risk-free. You can find treasury yields widely published on financial websites or the business section of a newspaper. For example, use a risk-free rate of 1.5 percent.
Estimate the market risk premium, the excess return stock investors require over the risk-free rate of return for taking on the risk of investing in stocks. Subtract the risk-free rate of return from the expected return of the overall stock market to calculate the risk premium. For example, if you expect the overall market to generate 10 percent returns over the next year, subtract the 1.5 percent risk-free rate, or 0.015, from 10 percent, or 0.1. This equals a market risk premium of 0.085, or 8.5 percent.
Substitute the values into the CAPM equation, Er = Rf + (B x Rp). In the equation, 'Er' represents the stock's expected return; 'Rf' represents the risk-free rate; 'B' represents beta; and 'Rp' represents the market risk premium. In the example, the CAPM equation is Er = 0.015 + (1.2 x 0.085).
Multiply beta by the market risk premium and add the result to the risk-free rate to calculate the stock's expected return. For example, multiply 1.2 by 0.085, which equals 0.102. Add this to 0.015, which equals 0.117, or an 11.7 percent required rate of return.