It appears there are federal regulations which state a minor can not hold stock in a publicly traded company....but, can they hold stock in their own name if it is not a publicly traded company regulated by the SEC?
2006-09-22 10:58:14 · 8 answers · asked by Anonymous in Politics & Government ➔ Government
My grand daughter is 7 and I have a stock portfolio in her name here in California. She is the owner, not me.
2006-09-22 11:01:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can own anything public or private stock, it just has to have an adult govern ship or put in an account protected until you come of age.
There have been cases of minors getting an account at E-trade, or Ameritrade.com and misstating their birthdays to get an account. One kid 12 yrs old made 40,000 in six months on a 500 dollar investment, but that is rare even for professionals.
it's best if you let your guardians sing you up for an account or stock, and keep it with a broiker unless you intend to hold it for a long time.
But no mionors can not legally sell or buy stocks, without an adult handling the transaction. or aurthorising it. Any one can give you shares of stock and have a holding company or broker hold them until you are of age to handle transactions yourself.
2006-09-22 18:10:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Usually when you are talking about shares you are talking about publicly traded companies.
Back to your original question, a minor cannot buy, sell, or trade shares because a broker is required and the minor does not have the ability to sign legal agreements or contracts.
Minors can receive shares as gifts or through inheritance, as long as an adult will act on the minors behalf.
2006-09-22 18:03:06 · answer #3 · answered by creskin 4 · 2⤊ 0⤋
Stock is typically held for minors by a trustee, because the minor can't be held legally responsible for his or her actions. Often the trustee is a parent or both parents. The Uniform Gift to Minors Act (UGMA) offers a nice tax advantage, because gains are made at the minor's lower tax rate, and the trustee can spend the money for "necessities" for the minor.
2006-09-22 18:11:34 · answer #4 · answered by senior citizen 5 · 0⤊ 0⤋
Actually, minors are generally not considered responsible for their actions. Thus, they cannot enter into contracts or own property without the participation of an adult.
But it is easy to get an adult to own securities for the benefit of a minor. There are a few basic rules on this, but it is not a big deal.
2006-09-22 18:02:29 · answer #5 · answered by world traveler 3 · 0⤊ 0⤋
Stocks should be 'in trust' for children under the legal age of 18 y/o.
2006-09-22 18:06:18 · answer #6 · answered by skyeblue 5 · 0⤊ 0⤋
Sure, just lie about his age. By the time anyone finds out he will be married with kid of his own to do the same thing with.
2006-09-22 18:01:50 · answer #7 · answered by Billy M 4 · 0⤊ 0⤋
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2006-09-22 18:00:11 · answer #8 · answered by Anonymous · 0⤊ 0⤋