How To Give Stocks As A Gift: 5 Easy Ways For 2025
Learn the easiest ways to gift stocks to anyone—kids, adults, or charities—with minimal hassle.
How to Give Stocks as a Gift
Gifting stock may seem complicated, but it’s often faster and more meaningful than traditional shopping. Whether you’re looking to introduce someone to investing or provide a long-term asset, stocks make excellent gifts. You have several straightforward options available, each with distinct advantages depending on your situation and the recipient’s circumstances.
Why Gift Stock?
Stock gifts offer unique advantages over traditional presents. When you gift appreciated stock instead of selling it yourself, both you and the recipient can benefit from tax advantages. If you’ve held stock for years and it has substantial gains, transferring it as a gift allows the recipient to benefit from those gains without you having to pay capital gains taxes on the sale. Additionally, stock gifts can serve an educational purpose, teaching younger recipients about investing and wealth building.
How to Gift a Stock
Before deciding on your gifting method, consider three fundamental questions: Who are you giving the stock to? What stock do you want to give? How much do you want to invest? The best approach depends on your specific situation, the recipient’s age and investment experience, and whether they already have a brokerage account.
Virtual Transfers
Virtual transfers represent one of the most straightforward methods for gifting stock, particularly if the recipient already maintains a brokerage account. This process involves initiating an electronic transfer through your broker by completing the necessary forms. You’ll need the recipient’s personal information and brokerage account details to complete the transfer. You have two options: transfer shares you already own, or purchase shares in your account and then transfer them to the recipient. Simply log into your brokerage account, look for the gifting or transfer option, and follow the prompts. If you can’t locate this feature, contact your brokerage firm directly for assistance.
Give Through an App
Modern financial technology has simplified stock gifting even further. Cash App now offers a gifting feature that allows users to send stocks and bitcoin to other U.S.-based users. The remarkable aspect of this service is that you don’t need to own the assets to gift them. Simply enter the amount you wish to send, provide the recipient’s information, search for the specific stock you want to give, and complete the transaction. This method appeals particularly to non-investors who want to give stock gifts without having to purchase and transfer shares independently.
Buy a Gift Card
If you or the recipient lack brokerage accounts, stock gift cards offer an accessible alternative. Stockpile allows you to purchase gift cards denominated between $1 and $200 that are earmarked for specific stocks like Disney, Tesla, Amazon, and Apple, or for index funds and cryptocurrency. Alternatively, you can leave the choice open for the recipient to select their own investments. This approach combines the convenience of gift cards with investment flexibility.
Make a One-Time Gift with Stock Certificate Included
For those who appreciate tangible gifts, platforms like GiveAShare.com and UniqueStockGift.com allow you to purchase a single share along with a framed stock certificate. The recipient receives both a brokerage statement and a physical certificate to display. However, this convenience comes at a premium cost. For example, a framed Apple share might cost $214 when the actual share price is significantly lower. Additional expenses include transfer fees ($69 at some platforms), framing costs ($2.95 to $48.95), and optional engraved plaques ($6 and up). While the upfront cost is higher, many find the tangible presentation worth the investment for special occasions.
Deal Directly with the Company
Certain corporations offer direct stock purchase plans that bypass traditional brokerages. Companies like Harley-Davidson, Mattel, and Nike allow you to purchase shares directly and automatically reinvest dividends into additional shares. Sites like FirstShare maintain comprehensive lists of companies offering dividend reinvestment programs (DRIPs). Costs vary by company; for instance, Harley-Davidson charges a $5 purchase fee plus 10 cents per share in addition to the share price itself, but allows purchases starting with just one share. This method can be cost-effective for specific companies you want to support.
Who Can You Gift Stocks To?
Stock gifts work for virtually any recipient. You can give stock to children, adult family members, spouses, friends, and even charitable organizations. The amount of stock you give can range from fractional shares to investments worth thousands of dollars. You don’t need to be an active investor or regularly buy individual stocks to give stocks as gifts. However, if your goal includes educational value, your investment knowledge will help you explain the benefits and risks to the recipient.
Gifting Stock to Children
When giving stock to minors, you’ll typically use a custodial account. Parents or guardians open and manage these accounts until the child reaches the age of majority. Custodial accounts are straightforward to establish through most major brokerage firms, which often provide competitive rates and user-friendly interfaces. Many financial institutions, including Charles Schwab, offer low-cost custodial accounts specifically designed for this purpose. Alternatively, some companies with direct stock purchase plans allow parents to establish investment programs with minimal initial investments. Stock gifts to children teach valuable lessons about wealth building and market dynamics, making them meaningful long-term presents.
Gifting Stock to Friends and Family
For adult recipients, the process remains relatively simple. The recipient needs a brokerage account to receive stock transfers. If they already have one, you’ll need their account information and personal details to initiate the transfer. If they don’t have an account, consider helping them open one as part of the gift. Many brokerages make account setup quick and easy through online platforms. Once the account is established, you can proceed with the transfer through your own brokerage by selecting the transfer or gifting option and providing the recipient’s account information.
Special Considerations: Stock Gifting on Robinhood
If you use Robinhood, you should know that while the platform has long been associated with stock gifts—new users can receive free stock when signing up, and existing users can earn stocks through referral programs—Robinhood does not currently allow you to gift stocks directly to another person. However, you can gift cash to someone so they can purchase stock through the app themselves. The platform does offer a crypto gifting feature for those interested in digital assets.
Step-by-Step Process for Virtual Transfers
Follow these steps to complete a virtual stock transfer:
- Gather the recipient’s account information including their name, account number, and brokerage firm
- Log into your brokerage account and locate the transfer or gifting option
- Select the specific shares or stock amount you wish to transfer
- Enter the recipient’s information in the transfer form
- Review all details for accuracy and submit
- Wait for the transfer to process, which typically takes several business days
- Confirm the transfer with the recipient
Tax Implications of Gifting Stock
Understanding the tax consequences is crucial when gifting stock. When you transfer appreciated stock rather than selling it yourself, you avoid paying capital gains taxes on the increase in value. The recipient inherits your cost basis, meaning the original price you paid for the shares, but they receive the stepped-up basis upon inheritance (if applicable in your situation). This can provide significant tax advantages compared to selling the stock and giving the proceeds as cash. For substantial gifts, consult a tax professional to understand your specific circumstances and any annual gift tax exclusions that may apply.
Frequently Asked Questions About Stock Gifting
Q: Can you buy stocks as a gift?
A: Yes, you can purchase stocks specifically as gifts. You can buy shares you don’t currently own in your brokerage account and then transfer them to the recipient, or use specialized gifting platforms that handle the purchase and delivery process for you.
Q: How do you gift a share of stock?
A: The most direct method is to initiate a virtual transfer through your brokerage account if the recipient has an account. Alternatively, you can use platforms like Cash App, Stockpile, or specialized stock gifting sites. Each method involves providing the recipient’s information and selecting the stock you want to transfer.
Q: Can you gift stock on Robinhood?
A: Robinhood does not currently offer a direct stock gifting feature between users. You can, however, gift cash to someone so they can purchase stocks through the app themselves, or take advantage of Robinhood’s crypto gifting feature.
Q: What are the best stocks to give as gifts?
A: The best stocks depend on the recipient’s interests and values. Consider companies they use or believe in, such as Disney, Apple, Amazon, or Nike. For educational purposes, choose stocks of companies whose business models are easy to understand.
Q: Can you give stock to a child?
A: Yes, you can gift stock to children through custodial accounts. A parent or guardian manages the account until the child reaches adulthood, making it an excellent way to teach investment principles and build long-term wealth.
Q: How much does it cost to gift stock?
A: Costs vary by method. Virtual transfers through most brokerages are free or low-cost. Specialized gifting platforms may charge small fees (typically $2.95 to $3 plus a percentage). Physical stock certificates through third-party sites can cost significantly more, sometimes doubling the share price.
Q: Do I need to report stock gifts to the IRS?
A: You don’t need to report most gifts on your tax return, as the annual exclusion allows you to give up to a certain amount per person without filing gift tax returns. However, consult a tax professional for your specific situation, especially for large gifts.
Making Stock Gifts More Meaningful
To enhance the gift-giving experience, explain to the recipient what you paid for the shares, their current value, and why you selected this particular stock. Share your investment philosophy and discuss why you believe it could be a good long-term holding. Consider pairing the gift with educational resources about investing and the stock market. For younger recipients, this explanation transforms a simple asset transfer into a valuable learning opportunity about wealth building and financial markets.
References
- How to Gift Stock — Money.com. Retrieved 2025-11-29. https://money.com/how-to-gift-stock/
- How to Gift Stock — NerdWallet. Retrieved 2025-11-29. https://www.nerdwallet.com/investing/learn/gifting-stocks
- The Upshot of Gifting Appreciated Stock to Kids — Charles Schwab. Retrieved 2025-11-29. https://www.schwab.com/learn/story/upshot-gifting-appreciated-stock
- Everything You Need to Know to Give Stocks for Christmas — Money.com. Retrieved 2025-11-29. https://money.com/everything-you-need-to-know-to-give-stocks-for-christmas/
- Now Giving Shares Is as Easy as Giving a Gift Card — Money.com. Retrieved 2025-11-29. https://money.com/giving-shares-stock-sparkgift/
- 5 Financial Gifts That Will Teach Kids and Young Adults About Money — Money.com. Retrieved 2025-11-29. https://money.com/financial-gifts-stock-roth-ira-529/
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