Lee N,
You do not have to go through a broker to sell (or buy) stock. I have done it several times without a broker. You must, however, have your stock certificates in your possession.
On the back of the certificate you need to fill out all of the info as to who you're transferring it to, and sign and date it. You also need to have it notarized. That gives the new owner possession of the stock.
It works essentially like transferring a title for a car. You can sign over a car title to anyone you want, but he's not recorded as the owner until he registers it. He does, however, really own the car at the time he receives the title from you, but the state doesn't know it yet.
The shares are not "officially" recorded as being the property of the new owner until he deposits them with a broker, or has them otherwise recorded in his name.....just like a car title. You would continue receiving any dividends on the stock until he does that, because you are still the owner "of record". Nobody knows about your private transaction except the buyer and seller until it's officially recorded. He can deposit the shares in a brokerage account and have the certificate re-issued in his name if he wants to, of he can just leave them in his account.
As far as the taxes, I won't give you any legal advice, but you are still liable for capital gains, and can still take the losses. See your tax advisor.
Obviously, some of the people on this thread have no clue....probably have never even seen a real stock certificate.
Laszlo..still looking for the "ignore" button 8^) |
