Legal Question in Intellectual Property in California

Re: capital stocks

The easiest way to transfer an interest in publicly traded negotiable securities ("stock" in, for example, IBM or Exxon) would be to get a stock certificate for 50% of the number of shares (if the shares are being held by a broker and you do not have a physical certificate, just call the broker and request one) and the shareholder would endorse the back of the certificate over to the transferee, just like one would endorse a check.

If the shares are not publicly traded, such as in a small corporation, the share holder would contact the corporate secretary and have him or her issue a stock certificate.

Re: capital stocks

This question has multiple answers depending upon what is meant by "some stocks."

First, do you mean stock in more than one issuer? "Some stocks" could mean, for example, 100 shares of General Motors, 200 shares of IBM, and 5 shares of Abbott Laboratories. In that case, the easiest way to accomplish the gift would be to go to a stock broker where the donor has an established account, and have the broker arrange for transfer of the appropriate shares on the books of the issuer and then re-issuance of the certificates to the new owners in the appropriate number of shares.

More likely, however, your friend is either establishing or has recently established a new business, which he pretty much controls, and he wants to reward you with part ownership for soem reason. Transferring interests in stock which isn't registered for public trading is a VERY different matter than dealing with shares of companies whose shares are bought and sold on major exchanges, or at least, through brokers.

If these are unregistered or unlisted shares, both of you should seek legal assistance from an attorney with a working knowledge of securities law. This is not just an advertisment for legal service. It is heartfelt advice from a lawyer who spent 35 years in the business world before practicing law.

There is a widespread notion amongst members of the public that there is a form, somewhere or other, that can be filled out to accomplish any business, investment, property or legal purpose or goal. The truth is that in the area of unlisted securities, the potential for fraud is so great that laws and regulations for the benefit (???) of the investing public have placed hurdles and roadblocks in the way of almost all deals, transfers, issuances, investments, gifts, etc. so that anything short of well-informed compliance with all the laws and regulations, both federal and state, will probably result in a violation.

The bottom line is that if the value of the proposed transaction is significant, BOTH parties should have separate, competent legal advice before attempting the stock gift.