How do I sell an unmarketable parcel of shares?

Understanding Unmarketable Parcels

An unmarketable parcel of shares refers to a holding worth less than $500, which is the minimum value for trading on the ASX. These shares can be challenging to sell due to their low value, often making the transaction costs outweigh the benefits.

Options for Selling Unmarketable Parcels

There are several ways to sell unmarketable parcels. Shareholders can use a stockbroker to sell the shares, but this may incur fees that exceed the value of the shares. Another option is to wait for the company to offer a sale facility, which may allow shareholders to sell without incurring brokerage fees.

Company-Initiated Sale Facilities

Companies often provide sale facilities for unmarketable parcels as a way to reduce administrative costs associated with maintaining a large number of small holdings. Shareholders usually receive a notice from the company offering this service, which allows them to sell their shares at market value. It's important to respond within the specified time frame to take advantage of this opportunity.

Impact of Selling Unmarketable Parcels

While selling unmarketable parcels can simplify a shareholder's portfolio and reduce administrative expenses for both the shareholder and the company, it’s essential to consider the potential tax implications. Selling these shares may result in a capital gains event, which could have tax consequences depending on the individual's financial situation.