Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

FWIW, a non-answer re NSS and certificates (italics mine):

To: Scottrade Customer Support <[e-mail]>
Subject: Other

If I were concerned about the legitimacy of my shares in a given company, that is to say if I wanted to confirm that my shares were actually shares issued by the company and not created in a short sale in which they were not delivered to the party from whom they were purchased on my behalf, could I receive my shares in certificate form?

Would the receipt of such a certificate establish that the shares were actually issued by the company?

I did not see a listing in your fees of a charge for issuance of a certificate. What is it?


Dear XXXXX :

In reference to your question regarding stock certificates:

We no longer offer physical stock certificates. This change was made in response to an initiative by the Depository Trust & Clearing Corporation (DTCC) to eliminate physical certificates.


DTCC discontinued the issuance of physical certificates for most securities on Jan. 9, 2009 and the remaining stocks were discontinued in July 2009. This is a Securities and Exchange Commission (SEC) approved, industry-wide change that will affect all investors regardless of the brokerage firm issuing the certificates.

If you still wish to receive a physical stock certificate, and the security is eligible to transfer through the Direct Registration System (DRS), you can have your shares transferred to an account with the company's transfer agent at no cost. You will need to complete an “Outgoing Direct Registration System Request” form and submit it to your local Scottrade branch office for processing. This form is available online through our Forms Center under the “Individual Forms” section. Please contact your local branch office for assistance in determining whether your security is eligible for transfer through the DRS system.

Please keep in mind that not all securities are eligible to be issued by the transfer agent in physical certificate form. As such, you may want to contact the transfer agent of the company first to verify that a physical stock certificate can be issued and to determine the fee(s) they may charge.

Please let us know if we may be of further assistance.

Sincerely,

Jason L.

National Service Center | Scottrade


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Follow-up just sent. Will post answer. I have the feeling that this is going nowhere, though.

Dear Jason L.,
I appreciate the prompt response.

You have made it clear that only certain securities are eligible for transfer through the DRS, allowing subsequent certificate issuance to me by the company's transfer agent. What is the specific characteristic that makes certain securities eligible for transfer and others ineligible?

I am hoping that your response will give me a better understanding of whether the receipt of such a certificate would establish that the shares were actually issued by the company, the unanswered and underlying point of my initial inquiry. I would prefer to understand the actual value of the process before contacting my local office to determine if it can be implemented.

Thanks in advance.

Regards,
XXXXXXXXX