How to Give a Share of Stock: A Modern Gift Guide

If you’re hunting for a gift that stands out from the usual suspects, consider heading to your online broker instead of the mall. Giving a share of stock might seem unconventional, but it’s increasingly popular—and for good reason. While stock gifts might be tricky to wrap, they offer something most presents can’t: the potential to grow in value over time. Plus, you’ll be introducing someone to the world of investing in a meaningful way.

“Stock gifts are fantastic for teaching people about saving, ownership, and financial discipline,” explains financial advisor JR Gondeck from The Lerner Group. “Even small amounts can spark real learning moments.” Research shows that many people actually prefer investment gifts over traditional presents like gift cards or gadgets. The appeal is clear: you’re giving something with lasting potential.

Why Shareholders Make Better Gifts Than You Think

Before diving in, ask yourself three key questions: Who are you giving shares to? What company do you want them to own? And how much value should the gift have? The answers depend on your situation and what you’re hoping to achieve, Gondeck notes.

One major advantage? Stock gifts can be incredibly tax-efficient ways to transfer wealth to family members. Beyond the financial angle, these gifts open conversations about investing, compound returns, and long-term wealth building—conversations that don’t happen when you hand someone a sweater.

Different Ways to Transfer Shares to Someone Special

You have several straightforward options for giving a share or multiple shares:

Virtual Transfers: The Direct Route

The easiest method is direct account-to-account transfer. Once you have the recipient’s personal and brokerage account information, you can initiate an electronic transfer through your broker. You can transfer shares you already own or purchase new ones and immediately transfer them. It’s often faster than a trip to the store.

Send Stocks Through Investment Apps

Apps like Cash App have made gifting simpler. Users can send stocks and bitcoin to other U.S.-based recipients—even if they don’t personally own those assets. You enter the amount, search for the specific stock you want to gift, and the recipient receives it instantly.

A Quick Note on Robinhood: While this popular app allows users to receive free stocks when signing up and earn additional shares through referral programs, it doesn’t currently offer a direct feature to gift shares to another person. However, you can send them cash to purchase stocks themselves. Interestingly, Robinhood does support cryptocurrency gifting.

Stock Gift Cards: No Brokerage Account Needed

Platforms like Stockpile offer gift cards ranging from $1 to $200, earmarked for specific companies like Disney, Tesla, Amazon, or Apple—or for ETFs and cryptocurrencies. Recipients can choose exactly what they want, or you can direct them toward your preferred investment. This works great if neither you nor the recipient has a brokerage account.

Getting Started: What You Need to Know Before You Give

The process varies slightly depending on your chosen method, but the basics remain simple. If the recipient doesn’t already have a brokerage account, they’ll need to open one—a process that takes just minutes with most major brokers.

The amount of stock you give can range from fractional shares (perfect for expensive stocks) to significant investments. You don’t need to be an active investor yourself to give shares as gifts, though having investment knowledge helps if your goal is educational.

Special Considerations: Gifting Shares to Children

Gifting stocks to young people is a wonderful way to introduce them to long-term investing. However, there’s an important legal requirement: children can’t typically own securities directly in most states. Instead, you’ll need to open a custodial account on their behalf. You can then purchase or transfer shares into this account.

When the child reaches the “age of maturity”—usually 18 or 21 depending on your state—ownership transfers to them, and they can do whatever they want with the assets. If you want more control over how they use the money later, you might consider setting up a trust instead, though this requires more setup.

Tax and Legal Facts About Sharing Stock

Here’s the good news: recipients typically don’t face immediate tax consequences when they receive stock gifts. The tax responsibility falls primarily on the gift-giver, and only if gifts to a single recipient exceed the annual exclusion amount set by the IRS (this threshold adjusts annually). When the recipient eventually sells the shares, they’ll report any gains or losses on their tax return—but that’s their responsibility at that point.

The tax-efficiency angle makes stock gifting particularly attractive for wealth transfer within families. Donating appreciated shares to charitable organizations can also qualify you for tax deductions, offering another strategic benefit.

What Makes the Best Stock Gift?

The “best” stock is really a personal decision. Financial experts recommend choosing shares of well-established companies with solid long-term performance records—think blue-chip stocks. If you want the gift to have educational value, consider companies your recipient knows and uses regularly. Disney stock is particularly popular for children, while tech giants like Apple, and lifestyle brands like Starbucks and Nike remain favorite gift choices.

According to GiveAShare, a platform tracking gift stock preferences, established companies consistently rank highest. The key is selecting something with genuine long-term growth potential, not a speculative pick.

Beyond Stocks: Other Investments Worth Gifting

Stock gifts aren’t your only option. Exchange-traded funds (ETFs) and mutual funds follow the same gifting process as individual shares. Some investors are revisiting savings bonds, especially with improved interest rates in recent years.

You can also gift cryptocurrencies through apps like Robinhood and Coinbase, though the process comes with additional complexities. Cryptocurrency gifts require extra consideration—make sure it’s something the recipient actually wants, since the crypto space involves more volatility than traditional stocks.

Final Thoughts

Giving a share of stock demonstrates confidence in the future and teaches valuable lessons about wealth-building. It’s a gift that keeps working long after the initial presentation. Whether you’re teaching a young person about investing, supporting a friend’s financial journey, or making a meaningful gesture, stock gifts offer unique advantages that most conventional presents simply can’t match.