Sell Shares
Computershare allows you to submit your sales request using their market trading functionality or their batch selling program.
Prior to selling shares, it is recommended that you:
- Consider which type of order you wish to submit
- Consider the fee structure
- Consider any tax issues
- Certifying your tax status
You can perform the following actions:
Consider Which Type of Order You Wish to Submit
Market/Limit Orders
Market Order* - When a Market Order transaction is requested, your shares will be sold at the prevailing market price when the trade is entered.
Day Limit Order* - When a Day Limit Order transaction is requested, you will be asked to specify the price at which your stock can be sold. If the trading price of SAIC stock reaches the specified price, an order is placed by the broker to sell your shares. If the stock does not reach the specified price by the end of that trading day, the order is cancelled. Please note: A sale is not guaranteed when a Day Limit Order request is placed.Good-Till-Cancelled (GTC) Limit Order* - When a GTC Limit Order transaction is requested, you will be asked to specify the price at which your stock can be sold. If the trading price reaches the specified price, an order is placed by the broker to sell your shares. Your order will be cancelled upon your request, if required by the applicable stock exchange or if your shares are not sold within 30 calendar days after submission of your order. Please note: A sale is not guaranteed when a GTC Limit Order request is placed.
Any requests for Market Orders, Day Limit Orders or GTC Limit Orders will be placed promptly upon receipt during market hours. Sale proceeds in such transactions shall equal the market price of the sale obtained by a broker affiliated with Computershare, less applicable taxes and fees.
All sales transactions are made through a broker affiliated with Computershare that will receive brokerage commissions in connection with such sales. Shares are sold on the New York Stock Exchange. The selling price will not be known until the sale is complete.
Choice of Proceeds Delivery - When you sell SAIC stock using a Market Order, Day Limit Order or GTC Limit Order, you will also have a choice of how you would like to receive your proceeds (Note: You are not able to submit a sale for 14 calendar days following a direct deposit or wire instruction update to your account):
- Direct Deposit - Net sale proceeds in U.S. Dollars are directly deposited into your U.S. bank account.
- Wire* - Net sale proceeds are sent via wire transfer either in U.S. Dollars or in one of the foreign currencies available through Computershare.
- Check* - Net sale proceeds are sent by check either in U.S. Dollars or in one of the foreign currencies available through Computershare.
*Additional fees will apply for enhanced sale transactions and certain proceeds distribution methods.
Batch Sale - In a Batch Sale Order, Computershare aggregates all requests to sell shares and then arranges for the sale of all such shares on the open market. Depending on the number of shares being sold and current trading volume in the shares, sales may be executed in multiple transactions and may be traded on more than one day. Sales proceeds in a Batch Order transaction equal the weighted average price for all shares sold on the applicable trade date or dates, less applicable taxes and fees. A check for the net proceeds in U.S. Dollars is mailed to stockholders to their address of record via regular mail.
Consider the Fee Structure
Proceeds from sales within the Investor Centre™ Application application will be net of all applicable taxes and fees. The fees will depend on the type of order you choose, how you enter your order and how you choose to receive your proceeds.
| Fee Type | Batch Selling Program | Market Orders | Limit Orders (Day or GTC) |
|---|---|---|---|
| Transaction Fee | $20.00 | $30.00 | $35.00 |
| Additional CSR Transaction Fee | $20.00 | $20.00 | $20.00 |
| Per Share Broker Fee | $0.05 | $0.05 | $0.05 |
| U.S.$ Check | $0.00 | $0.00 | $0.00 |
| Foreign Currency Check | $10.00 | $10.00 | $10.00 |
| U.S.$ ACH | $0.00 | $0.00 | $0.00 |
| U.S.$ Wire | $25.00 | $25.00 | $25.00 |
| Foreign Currency Wire | $35.00 | $35.00 | $35.00 |
Example #1: The following is an example of the fees that will apply for a sale submitted online or through the IVR under the following conditions:
A sale request is made to sell 200 shares with a Limit Order price of $10/share which is fulfilled. Proceeds are to be delivered via Wire Transfer in U.S. Dollars.
| Fee Description | Fee Amount | Proceeds |
|---|---|---|
| Gross Proceeds: (200 shares x $10 per share) | $2,000 | |
| Transaction Fee | $35 | |
| Broker Commission Fee ($0.05 per share x 200 shares sold) | $10 | |
| Additional Fee: Wire Transfer | $25 | |
| Total Fees: | $70.00 | |
| Less Total Fees: | ($70.00) | |
| Net Proceeds: | $1,930 |
Example #2: The following is an example of the fees that will apply for a sale submitted through a CSR under the following conditions:
A sale request is made to sell 200 shares with a Limit Order price of $10/share which is fulfilled. Proceeds are to be delivered via Wire Transfer in a foreign currency.
| Fee Description | Fee Amount | Proceeds |
|---|---|---|
| Gross Proceeds: (200 shares x $10 per share) | $2,000 | |
| Transaction Fee | $35 | |
| Additional CSR Transaction Fee | $20 | |
| Broker Commission Fee ($0.05 per share x 200 shares sold) | $10 | |
| Additional Fee: Wire Transfer | $35 | |
| Total Fees: | $100.00 | |
| Less Total Fees: | ($100.00) | |
| Net Proceeds: | $1,900 |
Consider Any Tax Issues
Prior to selling your shares, you should also consider the tax implications of your sale. Your taxes will be impacted by how long you have owned the shares and whether you have a gain or loss from your sale.
For more information about cost basis and how Computershare will be reporting your sale, refer to the Cost Basis for Shares Acquired After Jan. 1, 2011 and Guide to Tracking Shares and Transaction Detail for Shares Acquired Prior to Jan. 1, 2011 pages. Specific questions about your cost basis and your particular tax situation should be referred to your tax advisor.
Certifying Your Tax Status
IRS regulations require that you certify your tax status with Computershare prior to a sale of stock. Failure to certify your tax status prior to a sale of stock will result in a 28 percent U.S. backup withholding tax. If you fail to certify your tax status prior to a sale of stock and the 28 percent tax is withheld, you may be entitled to receive some of this withholding back from the IRS depending on your personal tax circumstances but this amount will not be refunded by SAIC or Computershare.
In order to certify your tax status within Computershare, simply follow the prompts when you first log onto your account. If you are not prompted, you should verify the certification status of your account. See Equity Holdings Certification.
Steps to Sell Shares Through the Investor Centre Application
All market sales requested will be promptly sent to the broker for execution. Market Orders requested over the web cannot be canceled once you submit them. Limit Orders will remain outstanding 1) until the order is filled, 2) for 30 calendar days if submitting a Good Till Cancelled Limit Order, or at the end of the trading day if submitting a Day Limit Order or 3) until you cancel the request, whichever occurs first.
- Log on to the Investor Centre website.
- Select and expand your SAIC holding by selecting the arrow next to SAIC.
- Expand the "Select Actions" button next to your SAIC shares and choose "Sell."
- The sales wizard includes 5 steps
- Step 1: Confirm your pre-sale details, including mailing address, banking information and tax status.
- Step 2: Enter your trade order specifics.
- Enter the number of shares or choose the lots you wish to sell.
- Under Order Type, select the transaction method you want to use to sell your shares:
- Batch: Computershare will combine your shares to be sold with sale requests from other stockholders being sold through the batch selling program. Aggregated shares are then periodically submitted in bulk to the market for sale.
- Market Order: If you select this option, your shares will be sold on the public market at the prevailing market price. Your sale request will be promptly sent to the broker after the sale request is submitted. This option is called a market order.
- Day Limit Order: If you select this option, you will need to indicate the minimum price you would accept to sell your shares by entering a Limit Price.
Under this option, your limit order will remain open for the remainder of the trading day (or the next trading day if submitted outside of market hours). Following the closing of the market on that day, your order will be automatically cancelled if the Limit Price was not achieved. There is no guarantee that your desired price will be met during this time period. - Good Till Cancelled Limit Order: If you select this option, you will need to indicate the minimum price you would accept to sell your shares by entering a Limit Price.
Under this option, your limit order will remain open for 30 calendar days. After 30 calendar days, if your desired price was not met, your sale request will be cancelled. There is no guarantee that your desired price will be met during this time period.
- Step 3: Select your Proceeds Distribution Preferences.
- Select Check or Electronic Funds Transfer Options.
- Step 4: Review and Submit
- Confirm your sales estimate matches your expectations
- Acknowledge your acceptance of the terms and conditions by checking the "Terms and Conditions" check box.
- Type the word "YES" in the box and "Submit."
- Step 5: Retain the Confirmation for your records.
- The sales wizard includes 5 steps
Steps to Cancel a Pending Limit Order
To cancel a pending Day Limit Order or a Good Till Cancelled Limit Order, click on Pending Transactions on the navigation bar on the left side of the page. Locate the transaction you wish to cancel and click on the Order number for that transaction. After confirming the details of that sale request you wish to cancel, click on the Cancel button at the bottom of the screen.
Warning: Once you choose to cancel your sale, the request to cancel the limit order will promptly be sent to the broker, so you must be sure you want to cancel the order before you submit your request.
Please note, only Limit Order type sales can be cancelled. Market Orders and Batch Selling Orders cannot be cancelled and are binding transactions once they are submitted.