How can I sell physical stocks

Difficulties and hurdles with physical securities

Today's discussion about the creeping abolition of cash has long been over for securities. The paper form has largely become obsolete. Here, too, the aim is to displace anonymous processes in favor of verifiable account processes - keyword black money and tax evasion.

Buy blackboard paper - a long-term obsolete model

In the past it was completely common to buy blackboard paper, today everything runs virtually, mostly through online depots. Even the term is rarely used, which is why some younger investors have to think about it first. Blackboard papers are like cash: a printed piece of paper that certifies a claim. The amount and the central bank as the claimant can be seen on a banknote.

It is also on printed stocks, bonds or fund shares. The respective claim depends on the type of security. In the case of stocks, there is also a dividend sheet with individual coupons that entitle the holder to pay out dividends - often with beautiful pictures and graphics. This is one of the reasons enthusiasts and collectors buy blackboard paper.

Decorative stocks with collector's value

Since only a handful of companies issue such shares, you have to search on platforms like hwph.de or sammleraktien-online.de. There are historical papers that only serve as decorative items with collector's value, but also those that are still traded on the stock exchange with a security identification number (WKN).

However, if you want to buy such blackboard paper, you usually have to dig a little deeper into your pocket, for example Borussia Dortmund. The only German football share to date may be quoted on the stock exchange at € 4, but the blackboard with beautiful pictures of the former victory frenzy costs € 129. Similar to the adult entertainment group Beate Uhse. A good € 35 is charged for the printing paper with its attractive erotic appeal, while the stock market price is well below the nominal value of € 1.

Allow for high bank fees

Like the art market, the collector's market cannot be compared to the stock exchange. If you own these papers, you have to take care of their safekeeping yourself, but also pay attention to deadlines in the case of dividends. You cut out the coupons, present them to the bank and receive your money. The income tax is then settled with the tax office.

You can save yourself the whole process by posting the papers in a depot, if one exists. However, this is likely to be very expensive, even with shares that have been donated or inherited. The fees for posting and delivery can be up to € 100 and more. In that case, when it comes to trade, it is better to stick to the collectors' market, where the price for popular pieces increases enormously.

Banks keep their distance

Most banks have not been involved with blackboard for a long time anyway. The stumbling block was a Federal Fiscal Court ruling from 2000. As a result, over-the-counter transactions with cash payments are legal, but there is reason for the tax office to investigate if a customer also has a corresponding account at the bank. However, there is no initial suspicion if he takes it to a foreign bank, for example because the fees are cheaper there.

Since then, the times are actually over when you could buy blackboard paper for cash, then just as anonymously put it in the locker and collect dividends in cash if necessary. This is only possible in a few cases. And anonymity also has its limits when more than a certain maximum amount of money wanders across the table. In order not to expose oneself to suspicion of aiding and abetting money laundering, the customer's data are recorded and stored.

Legal end in Luxembourg

This means that it is only possible on a small scale to avoid the automatic registration and final withholding tax. Even Luxembourg stopped the previously popular over the counter shops at the beginning of the year. Anyone who did not book them by 02/18/2016 lost their rights to the papers, they became worthless and have been used as wall decorations or collectors' items ever since.

In Germany, such a legal ban is not yet known, in principle, over the counter shops are still legal. But if you want to buy or own blackboard paper, you can hardly avoid booking it.

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