If it's for a child, one way is to set up a custodial account with a broker. Under a custodial account, both your name and your loved one's will be on the account. Any gains, income, or dividends on the account are taxed at the child's level, which, unless you are gifting stock to the next Shirley Temple, is beneficial from a tax perspective. The major difference between the two is that an UTMA allows you to maintain control over the money for a longer period of time. You can read more about it in our Tax area .
Adults enjoy receiving gifts of stock as well.
Simply transfer one or more of your shares into the name of the gift recipient. Finally, return the medallion, along with the stock certificate, to the transfer agent. Remember to complete an IRS Form W-9 to certify that you are not subject to backup withholding. If you are sending the paperwork via the U.S. Postal Service, make sure it's registered and insured. Once the stock certificate is signed, it's fully negotiable.