How to Transfer Stock Ownership

By: Kathy Zheng

The gift of stock ownership provides value for many years. Not only can the stock appreciate in value, it can also pay out regular cash dividends. Transferring stocks is a straightforward process to complete.

Step 1

Request a Transfer of Stock Ownership form from your stockbroker or directly from the brokerage company. Complete all of the questions on the form, including the number of shares you hold and/or wish to transfer, the stock ticker symbol and name of the company, as well as your personal contact and identification information.

Step 2

Write a letter with the instructions on the means of transfer to include with your Transfer of Stock Ownership form. For example, you may transfer the ownership immediately. You may also complete a joint transfer with right of survivorship. In this case, the persons that you are transferring to, such as your children, share equal ownership. If one of them passes away, the remaining children jointly share the stock ownership.

Step 3

Sign the back of your stock certificate to confirm authenticity of the transfer. Your bank or broker may also require an additional service called "Medallion Guaranteed" for additional verification.

Step 4

Copy the transfer form, stock certificates and any other identification documents that you are sending to your stockbroker. Send the Transfer form via registered mail and receive a receipt.

Step 5

Pay all applicable taxes on the transfer of shares. In New York state, for example, the transfer tax ranges from 1.25 cents to 5 cents per share. In addition, federal taxes apply to the person who receives the stock. When he sells it, he applies the funds as capital gains for income tax purposes.

Items you will need

  • Transfer of Stock Ownership form
  • Identification documents
  • Stock certificates

Video of the Day


About the Author

Kathy Zheng is a personal financial planner. She holds a Bachelor of Arts in economics and is certified as a level 1 financial adviser.

Zacks Investment Research

is an A+ Rated BBB

Accredited Business.