Stock FAQs

how to buy stock share to someone selling

by Cory Upton Published 3 years ago Updated 2 years ago
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  1. Gift stock to family, friends and children. There are annual and lifetime amount limits that change each year.
  2. Exchange stock with another party for stock or other asset. ...
  3. Buy stock and later sell it to another party for cash in a private transaction. ...
  4. Open an account in partnership with another party where you fund the account. Decide whether that person will also have rights to trade the account or withdraw funds.
  5. Write a will instructing how your stock assets are to be transferred. Control the stock assets as you wish, and change your will as you wish.

The easiest way to buy stocks is through an online stockbroker. After opening and funding your account, you can buy stocks through the broker's website in a matter of minutes. Other options include using a full-service stockbroker, or buying stock directly from the company.3 days ago

What is the best way to sell stocks?

The main types of sales-related orders include:

  • Market orders: These orders are sold nearly instantaneously at the current market price. ...
  • Limit orders: These orders set a minimum acceptable price, and the stocks will only sell if a buyer's offer meets that price (or goes higher). ...
  • Stop orders: These orders will only sell a stock if the price drops to a seller's chosen level. ...

How to know when to sell your shares?

Your Investments: When to Sell and When to Hold

  • Reasons to Sell. In general, investors want to offset gains until they can realize them in a lower tax bracket. ...
  • Reasons Not to Sell. Before deciding to sell, think about whether your investment goals are still realistic and within your current risk tolerance levels.
  • The Financial Implications of Selling. ...
  • The Bottom Line. ...

How can I sell shares without buying?

  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
  • You can now trade U.S. stocks and ETFs as of January 2022

How to start buying shares?

  • Varun Beverages: Target Price: Rs 986, Stop Loss: Rs 943
  • LUPIN (Sell): Target Price- Rs 756, Stop Loss- Rs 775
  • GAIL: Target Price- Rs 160, Duration 6-9 MONTHS
  • JSW Energy: Target Price- Rs 410, Duration 9-12 MONTHS
  • Godawari Power: Target Price- Rs 320, Stop Loss- Rs 295
  • ALKEM (SELL): Target Price- Rs 3,252, Stop Loss- Rs 3,350

More items...

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Who buys stock when someone sells it?

Institutions, market specialists or makers, corporate traders or individual traders may buy your stocks when you sell them.

Can you buy a share of stock for someone else?

Stocks can be given to a recipient as a gift whereby the recipient benefits from any gains in the stock's price. Gifting stock from an existing brokerage account involves an electronic transfer of the shares to the recipients' brokerage account.

Does someone have to buy a stock for you to sell it?

A broker is not required to buy from you if you want to sell shares and there is no one willing to buy. A broker won't lose money when a stock goes down in a bear market because the broker is usually nothing more than an agent acting on the seller's behalf when they find somebody else who wants to buy the shares.

How do I give someone a share of stock?

You can start the process online in your own brokerage account by opting to gift shares or securities you own; if you can't find that option, contact your brokerage firm directly. If you want to gift a stock you don't already own, you'll have to purchase it in your account, then transfer it to the recipient.

Can I gift shares to a friend?

Gifting shares involves making an off-market transfer of shares online or offline. In this method, a DIS (delivery instruction slip) needs to be filled by the donor with details of shares to be gifted, donee account etc. and handed over to his/her depository participant (DP). The DP will then transfer the shares.

Can I gift shares to my son?

Gifting shares and Inheritance tax (IHT) Giving shares to your children would be considered as a gift for the purposes of inheritance tax. If the transferor (person giving the shares) dies within 7 years of making the transfer, the transferee (child) will be liable to pay inheritance tax.

What happens if no one buys my shares?

If no one buys, your sell order will remain in your order book without executing and eventually get cancelled at the end of the day. This may happen for penny stocks which normally have very less liquidity or it may have a company specific bad news, global sell off, etc,. With regards, Manikanda Prasath K.

Can I buy the same stock after selling it?

There are no restrictions on placing multiple buy orders to buy the same stock more than once in a day, and you can place multiple sell orders to sell the same stock in a single day. The FINRA restrictions only apply to buying and selling the same stock within the designated five-trading-day period.

Should I buy when everyone is selling?

Don't buy when everyone else is buying. The obvious corollary is to be patient. You can only buy when everyone else is selling if you have held your fire when everyone was buying.

How do I buy stock for my nephew?

In order to give someone the gift of stock, you need to own that stock. The easiest way to get stock is to buy shares through a brokerage account. You can open a brokerage account with many different companies—many offer online access or an app for your phone.

Can I gift stocks to my wife?

You could gift the shares to your wife In this situation you do not have to pay any capital gains tax. This is because a gift to your spouse does not constitute a transfer as defined in the Income Tax Act and hence no capital gains tax is chargeable to the transaction.

How do I buy stock on my own?

You can buy or sell stock on your own by opening a brokerage account with one of the many brokerage firms. After opening your account, connect it with your bank checking account to make deposits, which are then available for you to invest.

What is discount broker?

Online (discount) brokers do offer investment-related links, research, and resources that can be useful. If you feel you are knowledgeable enough to take on the responsibilities of managing your own investments or you don't know anything about investing but want to teach yourself, then this is the way to go.

What is a full service broker?

Full-service brokers are what most people visualize when they think about investing—well-dressed, friendly business people sitting in an office chatting with clients. These are the traditional stockbrokers who will take the time to get to know you personally and financially. They will look at factors such as marital status, lifestyle, personality, risk tolerance, age (time horizon), income, assets, debts, and more. 1  By getting to know as much about you as they can, these full-service brokers can then help you develop a long-term financial plan .

Do discount brokers offer investment advice?

Online/discount brokers, on the other hand, do not provide any investment advice and are basically just order takers. They are much less expensive than full-service brokers since there is typically no office to visit and no certified investment advisors to help you.

Give It as a Gift

You can buy stock for someone else with the intent of giving it as a gift, such as buying stocks for Christmas gifts. This can help interest young people in the stock market and start saving for retirement. It can also help you reduce your tax liability.

Just Make the Buy

Let's say you have a friend or family member who really wants to get in on a hot stock before it's too late. He doesn't have a trading account or broker or doesn't have the money right now. He asks you to buy 100 shares of the ​ $40 ​ stock. You agree and spend ​ $4,000 ​ making the purchase. Now what?

Other Ideas for Gifting Stock

You can gift stocks to charities, which helps them improve their financial footing and can help you avoid capital gains taxes and enjoy a tax write-off. One way to interest very young people in the stock market and investing is to buy them a single share of stock in one or more companies that make products or services they enjoy.

How to buy stocks without a broker?

Another way to buy stocks without a broker is through a dividend reinvestment plan, which allows investors to automatically reinvest dividends back into the stock, rather than taking the dividends as income. Like direct stock plans, though, you’ll have to seek out the companies that offer these programs.

Who said "Buy into a company because you want to own it, not because you want the stock to go

Warren Buffett famously said, “Buy into a company because you want to own it, not because you want the stock to go up.”. He’s done pretty well for himself by following that rule. Once you’ve identified these companies, it’s time to do a little research.

What is a limit order in stock trading?

A limit order gives you more control over the price at which your trade is executed. If XYZ stock is trading at $100 a share and you think a $95 per-share price is more in line with how you value the company, your limit order tells your broker to hold tight and execute your order only when the ask price drops to that level. On the selling side, a limit order tells your broker to part with the shares once the bid rises to the level you set.

What is a stop level in stock?

Once a stock reaches a certain price, the “stop price” or “stop level,” a market order is executed and the entire order is filled at the prevailing price.

Do you own shares or stock?

For the most part, yes. Owning “stock” and owning “shares” both mean you have ownership — or equity — in a company. Typically, you’ll see “shares” used to refer to the size of an ownership stake in a specific company, while “stock” often means equity as a whole.

Is there a single best stock?

There is no single "best stock," which is why many financial advisors advocate for investing in low-cost index funds. However, if you’d like to add a few individual stocks to your portfolio, beginners may want to consider blue-chip stocks in the S&P 500.

What is a stock transfer certificate?

When you purchase a stock, you receive what's called a stock certificate, which is a legal document proving your ownership of the shares. If you decide to transfer your shares to someone else, you'll have to perform a stock transfer using a stock transfer form.

Do you have to pay gift tax on a stock transfer?

This means you can apply the excess of the value of the stock transfer against the unified credit and not have to pay a gift tax although you'll still have to file a gift-tax return.

Do you pay capital gains tax on gift shares?

Although you avoid the gift tax, the recipient will have to pay a capital gains tax if she makes a profit off the shares. In general, the IRS uses your cost basis to establish cost basis for the recipient if she sells the shares for a gain.

Who has no position in any of the stocks mentioned?

Brokamp: The vast majority is over computers and between institutions. Alison Southwick has no position in any of the stocks mentioned. Robert Brokamp, CFP has no position in any of the stocks mentioned. Ross Anderson has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Is pink sheet stock?

So, there's a lot of people trading a lot of stocks. It is possible that if you got into a thinly traded stock or what's sometimes called a pink sheet [which is an over-the-counter traded stock that is not on an exchange], that you could have an order sit out there that doesn't get filled, either to buy or to sell.

What is the best way to buy stocks?

An online brokerage account is the most convenient place to buy stocks, but it’s far from your only option. If you see yourself as a hands-on investor who likes researching companies and learning about markets, an online brokerage account is a great place to get started buying stocks.

What is a stock screener?

Stock screeners help you narrow down your list of potential stocks to buy and offer an endless range of filters to screen out all the companies that do not meet your parameters. Nearly all online brokerage accounts offer stock screeners, and there are more than a few free versions available online.

How much is Alphabet stock worth in 2020?

Take Google parent, Alphabet, Inc.: As of late September 2020, Alphabet is priced at nearly $1,500 a share.

What is a full service broker?

Full-service brokers provide well-heeled clients with a broad variety of financial services, from retirement planning and tax preparation to estate planning. They also can help you buy stocks. The trouble is full-service brokers charge steep commissions compared to online brokers.

What is value stock?

Value stocks are shares of stock that are priced at a discount and stand to see price gains as the market comes to recognize their true value. With value investing, you’re looking for “shares on sale,” with low price-to-earnings and price-to-book ratios.

Is a brokerage account taxable?

If you’re investing for a day sooner than retirement—or you’ve already maxed out your retirement accounts—look to a taxable brokerage account. While they don’t offer the tax advantages of IRAs, they also don’t have any limitations on how much money you can deposit or when you can withdraw funds.

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Understanding Stock Transfers

  • When you purchase a stock, you receive what's called a stock certificate, which is a legal document proving your ownership of the shares. If you decide to transfer your shares to someone else, you'll have to perform a stock transfer using a stock transfer form. You can obtain the form by visiting the website of the stock registry agent or contactin...
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First Steps For Completing The Transfer

  • Print the "Stock Transfer Form," fill it out in its entirety, and endorse the stock certificates. You'll also have to obtain a medallion guarantee from an approved financial institution. Once you're satisfied that you filled everything out correctly, mail the stock transfer form and the stock certificates to the agent.
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Understanding The Gift Tax

  • Every year the Internal Revenue Service publishes an amount, referred to as the annual exclusion limit, that you're allowed to give to another person without having to fill out a gift-tax return. In the years, 2013 through 2017, the amount was steady at $14,000. However, for 2018, the annual gift tax exclusion limit has been raised to $15,000. If the value of your stock transfer is above the an…
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Tax Impact to Recipient

  • It is worth noting, the Tax Cuts and Jobs Act of 2017 made sweeping tax reforms. One of the many changes for years 2018 through 2025, is the way long-term and short term capital gains are taxed. Prior to the Act, long-term capital gains taxes were tied to ordinary federal income tax rates. Now, long-term capital gains have their own tax brackets ranging from a 0 percent bracke…
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