Selling shares

Sell order

This is simply a matter of placing a "sell" order by phone or online with your broker. Like a buy order, you have to tell the broker the minimum price you want for your shares, or else instruct them to get the best price they can.

Contract note & settlement

Soon after the sell order, your broker will send a contract note to confirm the share sale. You will need the contract note, which includes fees and stamp duty, for your tax records. Settlement will take place three days after the day you sell. This means you no longer own the shares and receive payment for them.

CHESS

Listed companies can use an electronic settlement system called CHESS (Clearing House Electronic Sub-register System). In the normal course of events you will receive a CHESS statement that includes details of your shareholding. This will happen whenever you buy or sell shares in a particular company. Keep this statement.

Share buy backs & takeovers

In this situation you may receive an offer for your shares, even though you have not actively sought to offer them for sale. A share buy back occurs when a company wants to buy back some of its shares from its shareholders. You should discuss the offer with your broker or financial adviser.

Sometimes the company in which you own shares will be subject to a takeover offer. This happens when a company (other than the one you hold shares in) attains (or attempts to) a controlling interest in your company.

LAW FOR YOU

Read this: This fact sheet is intended to be general information about the law in Australia. It is not a substitute for legal or other professional advice. Lawscape Communications Pty Ltd, Fairfax Interactive Pty Ltd or MoneyManager does not accept responsibility for loss to any person, who either acts or does not act because of this fact sheet.

© Lawscape Communications P/L

Last Updated – March 2007