A friend wants to sell me IBM shares at a fixed price X (and no more, because of tax reasons). Since X is slightly lower than the market price, I'm happy to get the benefit of the bargain.

The friend transfers the stock certificates to me, and I pay him X in cash. So far so good.

The sticking point is that as far as IBM is concerned, the shares are owned by my friend and not me, meaning that he, not I, will get the dividends. What do I need to do to make sure that the shares are registered in my name so I get the dividends from IBM?

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    Your friend needs to transfer the shares from your friends "account" to your "account". Notice that I put account in quotes since I have no idea how this works in your country but my point is that by transferring them between your accounts the move will be registered, by the bank or similar where the account is, with IBM and you will get the dividends. Commented Nov 29, 2019 at 20:30

1 Answer 1


Since your friend has the stock certificate, check the IBM web site. You should find either:

  • Instructions for stock transfer along with a stock transfer form that you can print, or

  • The name and contact information of their stock transfer agent

If in the U.S., you may run into some difficulty with the IRS if you are buying the shares for less than their market value.

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