How to use stocks certificate as a gift to a teenager?

Question

I want to use a stock certificate as a gift to a teenager. Is there any secure way of achieving this?

Answer 1

Yes, depending on what you're trying to achieve.

If its just a symbolic gift - you can use a service like this. There are several companies providing this service, look them up, but the prices are fairly the same. You'll end up getting a real stock certificate, but it will cost a lot of overhead (around $40 to get the certificate, and then another $40 to deposit it into a brokerage account if you want to sell it on a stock exchange). So although the certificate is real and the person whose name on it is a full-blown shareholder, it doesn't actually have much value (unless you buy a Google or Apple stock, where the price is much much higher than the fees). Take into account that it takes around 2 months for the certificate to be issued and mailed to you, so time accordingly.

Otherwise, you can open a custodial brokerage account, and use it to buy stocks for the minor.

Both ways are secure and legal, each for its own purpose and with its own fees.