How to Buy a Single Share of Stock
There are several reasons to own a single share of a company's stock. The most common is to give the stock certificate as a gift. Other reasons are to join the company's dividend reinvestment program or to qualify for stockholder discounts. Giving a gift of a certificate for a share of a company's stock is appropriate for many occasions. Many regular brokerage accounts require a minimum of $1,000 or more to open an account. Brokers usually hold stock shares in book form and do not issue stock certificates. Several specialty companies now offer certificates for single shares of stock.
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Instructions
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Select one of the websites listed in Resources that offer certificates for single shares of stock. They offer stock certificates for a large number of well-known companies.
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Select "Name" under the "Browse All" tab at the top of the home page of One Share. This will bring up a list of all of the companies for which One Share can provide stock certificates. As an example, today, we will select the stock of software company Red Hat.
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Select Red Hat and you will be taken to an option selection screen for your order. At the top of the screen is the price of Red Hat, $23 on July 26, 2009. Below the stock price are options for a frame, mat and engraving. There are no-cost options in each category if you just want the stock certificate.
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Select the options you desire; then click on "Add to Cart." The minimum cost of our share of Red Hat today (see Step 3) is $62: $23 for the stock and the $39 transfer fee. The next screen is for the shareholder information.The stock will be registered in the owner's name. If it is to be a gift, make sure you enter the name and address of the recipient.
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Click the "Continue with Order" button at the bottom of the shareholder information screen and you will be taken to the final checkout where you enter payment information and finalize your purchase. Remember to review this page to ensure that the total cost includes the options you want.
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Be aware that stock certificates are individually printed with the shareholder's name and address. It can take up to eight weeks to receive an ordered certificate. The single-share websites offer gift announcement cards if you need to give the gift sooner. One Share calls this the "Start Up Kit."
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Tips & Warnings
Make sure you have the name and address of the stock recipient before you order. A social security number may also be necessary. Giveashare.com provides a listing of stocks that have dividend reinvestment programs.
Check several sites to get the best price for the transfer cost. There is a wide range of charges. The order screens are set up to automatically order a frame, mat and engraving. Deselect these options if you do not want them in your order.
