The purchase price of a Series EE Bond is one-half the face amount. As the bonds are held, interest is credited to the amount originally paid to establish their redemption value. The interest on Series EE bonds is exempt from state and local income tax. Forget about textbook economics. A gift of individual stock shares can teach your graduate real-world economics.
Stocks have the potential to grow into a down payment for a home or even a retirement nest egg.
Your gift may be the beginning of a portfolio and spark a lifelong interest in investing. Mutual Fund Shares For the grad who receives them, mutual fund shares may someday grow into tuition for graduate school or capital to start a small business. But if you decide to transfer shares, don't wait until the last minute. Your broker will probably send transfer forms that must be completed and returned before the shares can be given. This information will help the individual calculate his or her tax basis.