| The SEC estimates 3,000,000 securities
accounts are currently lost or abandoned, up sharply from
their previous estimate of 250,000 just ten years ago. Public
corporations and mutual fund managers have little
incentive to look for missing stockholders since they
retain use of the invested funds during the dormancy
period. A "lost securityholder" is defined as
one to whom a single item of correspondence - such as a
statement or annual report - is returned by the post
office as undeliverable. Failure to cash a dividend
check, claim a distribution, or exchange shares after a
merger also qualifies.
Because
transfer agents are holding an estimated $10 billion in
securities accruing $500 million annually in dividends,
new SEC guidelines {Rule 17Ad-17} were recently adopted
requiring more effort be devoted to locating lost owners.
It's important to note, however, that transfer agents
maintain records for only about half of all securities
owners. Broker-dealers, corporate trustees, personal
& institutional custodians, mutual funds, and issuers
who do their own transfer work are exempt; and new search
requirements do not apply to accounts lost prior to
12/7/97.
For those
who own stock in a company no longer listed on any
exchange, the shares may still have significant value if
the company merged with or was acquired by another. Also,
many shareholders are entitled to collect distributions
or spin-off shares after a split or reorganization, even
if the stock has since been sold. To determine if this
was the case, go to:
Lost Stock Search
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