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I was wondering if it were at all possible to sell my own shares to someone specific at a price I determine?

Let's say I have $1,000 worth of an arbitrary publicly traded company and I wanted to sell all my shares to my friend for $1, effectively gifting my shares to my friend in the form of a transaction.

Is this possible and if not how could I accomplish something like this?

edit

This is within Australia for shares on the ASX

  • The IRS may well view this as a gift. If you want to give them a gift, you're better off doing it as such, especially if it falls under the 13(14?)k limit for gifts in a year. – C. Ross Jan 12 '14 at 23:15
  • Where are you? Rules & taxes differ by country. Please edit your question and add a country tag. Regardless, your local tax authority, whoever that is, is likely to see this as tax evasion, if you would have otherwise owed tax on a capital gain, for instance, or due to the gifting. – Chris W. Rea Jan 12 '14 at 23:54
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Yes, you can do that, but you have to have the stocks issued in your name (stocks that you're holding through your broker are issued in "street name" to your broker).

If you have a physical stock certificate issued in your name - you just endorse it like you would endorse a check and transfer the ownership. If the stocks don't physically exist - you let the stock registrar know that the ownership has been transferred to someone else.

As to the price - the company doesn't care much about the price of private sales, but the taxing agency will. In the US, for example, you report such a transaction as either a gift (IRS form 709), if the transaction was at a price significantly lower than the FMV (or significantly higher, on the other end), or a sale (IRS form 1040, schedule D) if the transaction was at FMV.

  • If the recipient has an account with the same broker, it's a simple transfer request. If I recall correctly, there might not even be a form, just a 'letter of authorization' stating the request. (US experience, no idea of rules in Oz.) – JoeTaxpayer Jan 13 '14 at 11:01

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