The Philippine Long Distance Telephone Co. gives subscribers preferred stock shares upon subscription. These shares grant holders annual dividends, but no voting rights. Many people wish to liquidate these shares, but they find a dead end. PLDT preferred shares are rarely traded on the Philippine Stock Exchange. People wishing to trade PLDT preferred shares must follow complicated procedures to convert their shares into money. It takes at least one month to liquidate PLDT preferred shares.
Find and copy your preferred stock certificates.
Obtain a proof of acquisition cost from the Philippine Long Distance Telephone Co. This means getting a receipt for your subscription to PLDT as well as proof of bill payments.
Obtain a capital gains tax return from the Bureau of Internal Revenue, or BIR. The form number is 1707 and can be requested directly from BIR. You will need three copies of this form.
Obtain a documentary stamp tax return from the Bureau of Internal Revenue. The form number is 2000-OT. Again, you will need three copies.
Find a buyer for your preferred share and obtain a notarized deed of sale, showing the buyer’s agreement with you. You will need three copies of this.
Go to the BIR and find the One Time Transactions Desk. Turn in all the forms you have prepared, along with 130 Philippine pesos.
Wait for contact from the BIR. Once it has completely processed your forms, you can return to the BIR to obtain a certificate authorizing transfer of stocks.
Go to a certified PLDT stock transfer agent. The stock agent will need the following documents before approving the preferred share stock transfer: the BIR certificate of authorization, the stock certificate, your ID, transfer instruction, your signature card and the buyer’s signature card. After viewing these documents, the transfer agent will request a payment of 120 Philippine pesos. After the payment, the deal is complete.
If you find this method inconvenient, it is possible to convert preferred PLDT shares into common shares, which can be sold more easily on the stock market.
- If you find this method inconvenient, it is possible to convert preferred PLDT shares into common shares, which can be sold more easily on the stock market.
Having obtained a Master of Science in psychology in East Asia, Damon Verial has been applying his knowledge to related topics since 2010. Having written professionally since 2001, he has been featured in financial publications such as SafeHaven and the McMillian Portfolio. He also runs a financial newsletter at Stock Barometer.