Are you looking to sell some of your stocks and shares?

Perhaps you bought them a long time ago on a whim, were given them as a gift, or inherited them from a relative.

However you accrued them, if you want to sell your shares from your investment portfolio but aren’t sure how to do that, you’ll no doubt have some questions.

In this guide, we’ll attempt to answer some of the more common questions people have when selling their shares – especially for the first time.

Whether yours are broker-sponsored, issuer-sponsored, or inherited, we hope this article provides you with some guidance.

Do I need a broker to sell shares?

If you want to sell your shares, one of the first questions you might ask is whether you need a broker.

Well, the short answer is no. You can, in fact, sell your shares without using a broker. However, you will need to engage a service to act as your share register.

For example, if you want to sell Telstra Shares in Australia or any other holdings you might have, you can engage the services of any ASX broker, who can then set you up with an account and create a HIN. However, you would need to provide them with your Security Reference Number (SRN) – a unique code that is used to identify who owns any particular stocks or shares held by a share registry.

Once you’ve done this, they can make a one-off sale on your behalf.

How do I sell shares that are broker-sponsored?

Should you own CHESS-sponsored shares that you want to sell, the same broker that you used to purchase them can sell them.

However, if you are open to selling them through a different broker, you will have to open an account with that broker and transfer the shares over to it first. Just be sure to compare various trading platforms to find the right one for you.

When transferring the shares to your new broker account, you will need to complete a transfer form, which will initiate the process. Once the transfer has been completed, you can set up a sell order for your online trading shares account.

How do I sell shares that are issuer-sponsored?

If you want to sell shares that are issuer-sponsored, the process is a little more involved.

Essentially, you have two options. Firstly, you can sell them through a share registry. However, you will need to provide them with your contact details, your SRN and certain forms of identification. You might be able to complete the transaction online, though fees and sale limits do apply.

Alternatively, you can sell them through a broker by transferring the shares directly to them from the registry prior to selling them. Again, you will need to provide them with your SRN. The transfer will also need to be completed via your trading share account.

While your broker should be able to provide step-by-step guidance on how to go about doing this, you should be mindful that not all brokers offer share trading services on an individual basis. Subsequently, before you are able to sell your shares, you might need to set up a trading share account, which will require providing specific forms of identification and linking your bank account.

How do I sell inherited shares?

Should you want to sell shares that you inherited from a deceased relative, the process involved in selling them can vary.

The process of selling them is fairly simple if the ownership of shares has been transferred to your name.

However, if the shares remain in the name of a deceased estate, you will be required to provide additional documentation, notably a death certificate and a copy of the probate.

Additionally, it’s worth noting that while you won’t have to pay tax on any shares you inherit, you could get hit with capital gains tax, should you ever decide to sell them.

Are there any costs involved in selling shares?

Shares are a good way to build up your wealth. However, whenever you want to sell your shares, a brokerage fee will apply.

Typically, this fee will vary between platforms and will also depend on whether you are selling through your regular trading online share account or as a one-off sale.

The size of the fee will depend on the value of the transaction. So, you should factor this into the equation when determining your potential profitability before you decide to sell.