Whether you are bestowing stock upon a friend or family member or you wish to use stock to repay a debt, buying stock for someone is a straightforward process. Certain procedures must be followed to finalize the transfer. A brokerage firm can help with the transfer to ensure that the stock changes hands correctly and your intended recipient becomes the rightful owner.
1. Open an investment account with a brokerage firm or an online broker if you don’t already have an account. You'll be required to provide your personal information, such as your Social Security number and banking information, to complete the account application process.
2. Purchase the stock for your account. The funds to pay for it will come from the banking information you associated with the account, or if you already have cash in the account, that money will be used to fund the transaction.
3. Obtain the name of your recipient’s broker and company, the account holder’s name and her account number so you can transfer the stock from your account to the recipient’s. If the recipient does not have an investment account, she will need to create one to receive the stock.
4. Transfer the stock from your account to the recipient’s by initiating a transfer request from your account. Verify that the recipient received the stock.
- You can purchase a single stock certificate as a gift using a company such as OneShare or GiveAShare. Select the stock, provide the name and address of your recipient and then pay for the stock. If the recipient is a minor, provide the name and address of the minor’s custodian. If the transfer agent for the stock company requires a Social Security number, the recipient can furnish it at the time he registers the stock. Some companies simply send a W9 form to the recipient to obtain a Social Security number after the stock has been registered.
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