How to Open a Stock Brokerage Firm

Register with appropriate regulatory authorities and organizations. Unless a broker intends to conduct business solely within a state, it must register with the Securities and Exchange Commission by filing Form BD, the Uniform Application for Broker-Dealer Registration. It is also required that a broker may not begin business until it has become a member of a self-regulated organization (SRO) such as a national securities exchange or FINRA, the Financial Industry Regulatory Authority. With few exceptions, a broker must also be a member of the SIPC, the Securities Investor Protection Corporation, which insures brokerage customers up to $500,000 in a broker liquidation.
Have partners, managers and employees registered with FINRA and arrange for them to pass their securities exams. In addition to a brokerage firm becoming a member of FINRA, its associated persons who effect securities transactions for the firm must also register with FINRA by filing Form U-4 through the firm. FINRA also sets qualification requirements for associated persons including passing a series of securities examinations. Among them, the comprehensive series 7 for corporate securities trading must be taken by anyone wishing to be a registered general securities representative.
Choose either to become an exchange member or sign an institution brokerage account agreement with another floor broker. Because there are only a limited number of seats from any stock exchange, new brokerage firms interested in becoming an exchange member have to either wait for a vacant seat to be for sale, or lease a seat from a current seat owner. Other firms may elect to conduct their brokerage business through a member broker. The New York Stock Exchange, for example, has 1366 floor brokers, including 7 designated specialists or market makers that non-member brokers can choose when routing their customers' orders.
Set up an infrastructure and platform for receiving and routing customer orders. These include purchasing computer servers, creating a website and choosing a stock trading software company for trading platform installation. All brokerage firms nowadays provide customers with access to online account management and online trading of securities. Depending on the intended size and complexity of the new brokerage firm, align your needs with the right version of trading software, full-fledged or scaled-down. Tech companies providing financial software offer such choices.

How to Sell an Inherited Stock Certificate

Know that the transfer agent is the financial institution that handles all the stock for a particular company. Whether you want to buy, sell or transfer a stock certificate you will have to contact them in one form or another.
Get the paperwork from the transfer agent. Most of these require a medallion signature guarantee for several things in the paperwork. This is a stamp that can be affixed by most bank branch managers. Finish all the paperwork first, except the signatures that need to be medallioned, before taking it to the bank.
Secure a death certificate. You also need a court appointment of executor that is a certified copy. This means that it contains an original signature and seal. Don't delay because companies reject these if they are over six months to a year old.
Prepare to transfer the stock with a transfer of stock form from the transfer agent. You will need to change the certificate to the name of the estate or heir before any transaction can be done. The transfer forms must be signed by the executrix and heir if it is not going into the estate.
Send in the original stock and all the paperwork asking for the transfer of the stock certificate. The transfer agent automatically sets up an account for the heir or estate. Everything is in place to sell the inherited stock certificate by letter of instruction or phone.
Establish a pin number for your account. Phone the customer service line and request a sale. The money is sent in about five days.



Know that you will have brokerage costs involved in the transaction. When selling the inherited stock certificates through a transfer agent the cost is only a few dollars.
Take all the information regarding your position as executor with you. You need a certified court appointment that is no older than one year and with some companies requiring they be less than six months old. Take an original death certificate along. Photocopies are frequently unacceptable.
Establish a brokerage account for both the estate and if necessary, the heir. While a broker may choose to do the paperwork for you and go direct to the transfer agent, frequently they allow the back room to prepare it. They do this by establishing two accounts. The decedent account to deposit the certificate, and the heirs' account where they transfer it and sell the inherited stock certificates.
Request a sale at a specific price. Use a limit order to sell the inherited stock certificates for a specific price. The broker can help you with it.
See if they have online accounts. Some companies have online accounts where you can sell the stock yourself. See if the broker can walk you through the steps so you can save money on fees.