Cheap ways to unload those dog stocks

— -- Q: What is the cheapest way to sell a practically worthless stock certificate in my possession if I don't want to wait for a rebound?

A: If the bear market that began in 2007 teaches investors anything, it's that stocks can go to zero.

That poses a dilemma for investors. You might hang on and hope for a recovery. But it sounds like you've ruled that out. And if you want to bail out, depending on the commission you pay and the share price of the stock you sell, the cost of selling the shares could easily exceed the sale proceeds.

But don't let this hang you up. Remember, when you sell a nearly worthless stock in a taxable account you can use the tax loss to offset capital gains and up to $3,000 of ordinary income. Bigger losses can be carried forward to subsequent years. That tax savings will help absorb the cost of the trade.

Second, there are ways to unload a stock pretty inexpensively. For instance, if you open a brokerage account with Zecco, Bank of America or Wells Fargo with at least a $25,000 balance, you could sell your nearly worthless stock for no commission. You might check with your local Bank of America or Wells Fargo branch and see if they will accept the certificate for you. That way you could also save the cost of mailing and, depending on the value, insuring the certificate.

If you don't have $25,000 to open a brokerage account, you can still get inexpensive commissions. Zecco's standard commission of $4.50 per trade is reasonable, as is the $5 commission charged by TradeKing, $4 commission charged by Sharebuilder and $3 by SogoTrade.

Be sure, though, to check if the broker charges a different commission for stocks trading for $1 or less. SogoTrade, for instance, charges a half of a percent and a minimum of $3 for stocks trading below $1 share.