Discussion in 'Finance, Property, Law' started by error_unknown, Nov 4, 2002.

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  1. Sweetie (you can tell that I am after a favour!)

    Forgive my ignorance, but my lad was given some shares by his Godfather 5 years ago.  Problem being the nugget of a Godfather purchased them in his name.  How do we go about getting the shares put back into my lads name?

    Please talk slowly and use simple words as I ain't got a clue about anything to do with the Stock Exchange!  :-[
  2. on the paperwork for the shares tip ex out the name of the godfather and insert your nippers name.....simple probably not legally binding but worth a try
  3. Here is a little something for you trog......[​IMG]

    ahem... TSD,

    This is a good question and you are not a thicky at all as these things can be complex.

    I am working on the basis that your little one is under 18 but let me know if not.

    Under-18s are not allowed to buy, sell or hold shares in their own right. So investments for children need to be managed on their behalf. In light of this, you may want to leave the shares with your generous chum until mini-TSD reaches 18.

    There is a more formal option where the adult can set up a trust to have the shares transferred automatically – let me know if you want to explore this option (but frankly it's best avoided if possible as it is a bit fiddly).

    When your child reaches 18, it is very simple to transfer the shares.  The current shareholder – your chum - completes a shares transfer form (available from the registrars, whose contact details will be on the share certificate) and sends it to the registrars along with the share certificate (best sent by recorded mail).  The registrar will then process the transfer and issue a new ceritificate to the new holder – your child.  The registrar will be able to help at any stage in this process if you have questions.

    One other thing – as the existing shareholder, your chum will be sent any money that the shares make (these are called dividends and are usually sent quarterly).  He has the choice of re-investing this money as he gets it, to buy more shares in the same company or he can have the money by cheque or paid into an account of his choice.  If the shares are performing well, the dividends may add up to a tidy sum over the years.  So your chum could opt to pay that money into a separate account for your child enabling little-TSD to buy a Scalextric set for his daddy....

    I hope this helps but let me know if it is unclear or if you have further questions.
  4. What more can I say.........thanks.  If ever you want to know anything about stamps, trains, bell ringing, pressed wild flowers, astrology, mixamotosis, Dutch Elm Disease, Shire Horses, the Wurzels, pre-Ghenghis Khan art...............then let me know.  :-*

  5. My pleasure - happy to help!
  6. F_S:

    On the subject of shares, if I want to get involved and dabble a little is it fairly straight forward to get a broker or dealer and how much in general do these people charge per deal?

    I would have thought that now was a good time to get involved. ::)
  7. Captain

    Entirely your call on timing - but yes, many people are buying now while shares are cheaper in the hope they will rise in value.  Others take the view that the market has not bottomed out yet and so there is a good chance you will see your shares fall in value further still.  That is all part of the fun of the market!

    As always, it is best to do your homework - there are endless free resources available to you which will help you get a feel for the risk profile of a company/its shares.  

    Lots of firms do online sharedealing packages combined with telephone option.  One example of what is on offer is the Ample sharedealing service:
    It is £10 flat fee for UK deals plus free portfolio services and lots of other features.  It is worth having a look at its  bulletin boards for the shares that interest you too - these are biggest in the UK (1.5 million users) and can give you a good feel for what other investors think.  

    The golden rule is to only invest what you can afford to lose.  Alternatives include a collective investment such a a unit trust which pools your money with other investors' money and spread the investment across many companies/shares to reduce the risk.  In the depressed market though, the returns on these are not as good as they were - you will need to take a long term view and leave the money there to have the best chance of a decent return.

    Whether you decide to deal in shares yourself or opt for a collective investment, take some time to learn about both routes.  Let me know if you have further questions, on this thread or via PM.
  8. Not wanting to 'lose' too much and not having much cash......would it be embarrassing to buy £100 worth of shares......for my first go ? or is there a minimum trading amount ?
  9. In theory can you invest small amounts in shares but you might want to consider:

    *Dealing fees (from £10 per deal when you buy AND sell)
    *Why you want the shares and how long you plan to keep them.
    *Whether you could use the money better elsewhere (for debts, savings or as a contribution to a stockmarket based investment such as an ISA or unity trust).

    Hope I have not spolit your fun. Let me know if you have any questions.