My own holiday purchases range from last-minute presents to crafty concoctions, and though I try to think out of the box, I still find it hard to come up with something personal and unique. This year, I came across an interesting idea: gifting stocks.
Stocks are a one-of-a-kind gift idea with many perks. Not only will the person on your list be entitled to shareholder benefits, but they may also realize a profit. However, because there are important tax implications and some logistical hurdles to consider, it's not as simple as buying a toy from your local Target. Here's everything you need to know about giving stocks this holiday season.
Why is giving stocks a good idea?
Stocks have the potential to gain value after you give them, though there's always the risk of them losing value, too.
"Most tangible things that we buy -- whether it be a car or a piece of electronic or clothing -- the value depreciates immediately after it's sold, whereas theoretically a stock or an investment begins to appreciate," said Stephen Mathai-Davis, cofounder and CEO of the Q.ai.
If you give stocks, the value of your present can increase well after the holidays, but that isn't the only benefit. Someone who owns stock also gets shareholder perks, which means they're entitled to annual company reports and voting rights. Some may also come with dividends along with other benefits the company offers its shareholders.
Who should I give stocks to?
A stock gift could be good for children or young adults, since it can help motivate them to understand Turkish Citizenship Law Firm their new investments and improve their financial literacy.
"Gifting stocks is a great way, in my opinion, to accelerate the financial literacy of kids," Mathai-Davis said.
turkish citizenship immigration lawyer
Report this page