[baselle]

It sounds like choice 1 merely moves the stock from street name to your name as the shareholder. You close your account w/Ameritrade, but now you really own the stock certificate, which you can sell to whomever. If your future commitment is to form a DRP with the stock, essentially sending it to the company directly, this would be the way to go.

If you are looking for the money, choice 1 must turn into choice 2 - you cash out and sell your stock through the brokerage. They will charge you for the pleasure, and they will also charge you an SEC fee. It will probably be more than 40$.

You'd probably pay twice on option 1 if you just want the cash. If you had the certificate, you could take it to any brokerage to sell the certificate, but they would charge you a similar fee and the SEC fee as well.

The confusion comes because closing your account and selling the shares within is a two step process, not a one step process. Remember, when you hold stocks in Ameritrade, Schwab, TDW, etc, you don't really "own" a stock outright. The brokerage owns a pool of that stock and essentially pins your name on however many stocks you hold. Semantics, yes, but what comes with that is convenience. Once upon a time, you could only buy stocks in round lots -- in a batch of 100 shares. It made a shareholder plunk down some serious money (if he wasn't buying on margin).

Whatever you do, though, make sure you keep your paperwork after the sale! If at all possible, have the brokerage send you dups of any statements regarding these stocks - when you bought them, the price you paid, etc. It will save you the rendering of garments and the gnashing of teeth during tax time next year.