Transferring stock from one person to another is a much simpler process than one might imagine. When people think of stocks, they think of screaming men running back and forth around a giant room littered with strewn about the paper, but the act of transferring stock is really just a bit of paperwork and then you’re done. Stock transfer services are very cooperative about this, to the point where it can be broken down into a few simple steps.
#1. Contact your firm
Of course, the first step is contacting the firm that’s holding your stock and asking them for transfer paperwork. Most firms make their own unique paperwork for this, and should have it delivered to you in short order.
#2. Fill out the form
The stock transfer form has arrived. All you need to do now is fill out the paperwork. This includes the name of the issuer of the stock, how many shares you want to transfer, and the reason for doing so. You’ll also have to put down your name, address, and the same for the person meant to receive the stock. However, if you want to be more direct, and send the shares straight to the other person’s bank account, you’ll need to provide information on that person’s account, so the transfer can be made. It is best to hire a company that specializes in stock transfer services, such as Colonial Stock to make the process easier.
#3. Medallion signature guarantee
As stated previously, every firm handles their stock transfer forms differently, so some will require a medallion signature guarantee. This is a way for the firm to guarantee that you are indeed the registered owner of your account, and the stocks you are transferring. The standards by which this is done vary from firm to firm, and the information on what is required of you will be included in the papers.
#4. Double check for any other required documentation
You want to be sure about this, because you could fall under heavy scrutiny for not filling out certain required pieces of documentation, especially if your firm is the paranoid type. For instance, if the recipient of the stocks is a minor, then you may be required to provide a copy of the recipient’s birth certificate. If they’re a divorcee, a copy of the divorce decree.
There’s much about the business of stocks that is complicated, but transferring stocks is not one of them. It is, in fact, one of the simplest processes in the business. So, if you want to transfer stocks to someone, and you’re worried about lacking a degree in economics to get it done correctly, give the professionals at Colonial Stock Transfer Company, Inc. a call.
