Transfer or repurchase shares

Start with the existing certificate

Open Securities, find the share certificate, and choose its Transfer or repurchase action. Check the holder, class, certificate label, and available quantity against the transaction records. This workflow applies to issued shares.

The app closes the original certificate on the transfer date and creates successor certificates for the holdings that continue. Keeping that chain allows earlier cap tables to show the original certificate and later cap tables to show the result.

Enter the recipient and terms

1. Choose the receiving party: an existing stakeholder, a new stakeholder, or The company (repurchase).
2. Enter the number of shares. Use a whole number no larger than the certificate’s quantity.
3. Enter the transfer date. It cannot precede the certificate’s issuance date.
4. Enter the transaction’s price per share. A blank price records zero consideration, so leave it blank only when that matches the transaction.
5. Read the summary and select Record transfer when the proposed records match the event.

Understand transfers and repurchases

For a transfer to another holder, the recipient receives a new certificate. If only part of the original holding moves, a separate certificate holds the seller’s remainder. A transfer of 20,000 shares from a 100,000-share certificate therefore leaves 80,000 with the seller and 20,000 with the recipient, with no change in aggregate outstanding shares.

For a company repurchase, the repurchased shares are retired in this app. No buyer certificate is created for those shares, and outstanding shares decrease. A partial repurchase still creates a successor certificate for the seller’s remaining holding.

The recipient’s transaction price is recorded separately from the original issue price used for preference calculations. Check both when reconciling a secondary sale.

Review vesting and the certificate chain

If transferred stock is subject to vesting, read the warning before saving. In this workflow, the buyer’s certificate carries no vesting schedule, while the seller’s remainder retains a proportionally adjusted schedule. A transfer can therefore reduce the shares reported as unvested. Confirm that this treatment matches the event you are recording.

After saving, review both holders, the successor certificates, and History. Compare cap tables before and on the transfer date. For repurchases associated with a plan, also review the plan balance and its recycling rules.