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Step 1
Decide how much money you want to spend. This is a crucial first step, because if you buy directly from companies, according to Kiplinger.com, they might have purchase minimums. Also, if you buy through a broker such as ShareBuilder or E*Trade, you'll have to account for fees and/or commissions.
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Step 2
Research the company or companies from which you want to buy stock. You might be buying a particular stock based solely on the child's interest in what the company offers, but if you are purchasing stock as an investment only, check out the company's financial stability and stock history.
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Step 3
Choose to buy from a company itself, from an online broker or from OneShare.com, which offers a stock certificate for a single share from major companies complete with a frame.
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Step 4
Do your research if you choose an online broker. There are plenty to choose from, and most all of them have varying fees/commissions.
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Step 5
Finally, fill in all information required from the broker or company. This usually includes address, phone number, date of birth and Social Security Number. If you are registering the information in your name, dividends will be taxed at your given rate. Registering the information in the child's name will also allow for any dividends to be taxed, but at a minor rate for people under age 18, according to BuyandHold.com.
