Transferring shares of stock to another person is a straightforward process that requires simple paperwork. Essentially, as long as you give written authorization that you want to transfer ownership of a stock, you can easily transfer it. In some cases, an additional certification stamp known as a Medallion guarantee may be required. Depending on the size and type of your transfer, you may face some tax consequences in transferring stock ownership.
Step 1
Contact the firm that holds your stock for transfer paperwork. Most firms have their own unique paperwork to help you process a stock transfer.
Step 2
Complete the stock transfer form. Provide the stock issuer name, the number of shares you wish to transfer, and the reason for your transfer. You'll also have to provide your name and address and the same information for the recipient of your shares. If you are transferring shares directly to another person's account rather than to her personally, you'll have to provide the information on the recipient's account, such as the account number.
Step 3
Verify whether you are required to get a Medallion Signature Guarantee. The Medallion Guarantee program is a type of notarization process in which a financial services firm guarantees that the person signing a transfer form is indeed the registered owner of that security. Some institutions base their requirement for a Medallion guarantee on the number of shares that are transferred, but others use different standards.
Step 4
Check for further documentation requirements. In most cases, a signature and possibly a Medallion Guarantee are all you need to transfer stock to another individual. In certain situations, such as if the recipient is a minor or the transfer is due to divorce, your firm may require additional paperwork, such as a copy of the minor's birth certificate or the divorce decree.
Step 5
Submit your stock certificate to your financial services firm along with your completed paperwork.
References
Writer Bio
After receiving a Bachelor of Arts in English from UCLA, John Csiszar earned a Certified Financial Planner designation and served 18 years as an investment adviser. Csiszar has served as a technical writer for various financial firms and has extensive experience writing for online publications.