If you own some stocks in a company or corporation and want to sale them to someone else, you can do that by transferring the ownership rights of the stocks to the buyer. This is done by signing the stock transfer form that includes the name of the seller and buyer along with other important elements.
Check list to complete the Stock Transfer Form:
- The amount of consideration money is mentioned in the form (only if applicable)
- Correct number of stocks is entered in the form along with mentioning their specific class
- Both parties have signed the form including the seller, buyer and witnesses
- The names of the sellers and buyers are mentioned correctly in the form along with their complete address and contact numbers
- The dates are verified and correct
- A third party name and address is included in the form to which you will send the stock certificate as the previous owner
Key elements to include in the Stock Transfer Form:
Usually the elements of a stock transfer form depends on each country, state and type of company that actually owns the stocks but usually this transfer form includes the following key elements that are really crucial to include in the stock transfer form. Although if you don’t include these elements in the transfer form, it will still be legal and legit but it’s possible that if you don’t agree on terms and conditions and add specific clauses in the transfer form, there will be some disputes or issues between the buyer and seller in future.
- Names of the buyer and seller:
This is the most important element of stock transfer form and you need to clearly mention the names of the seller and buyer of the stock in appropriate boxes on the form.
- Details of the stock:
This includes the type of stock, class of stock, total amount of stocks and the company in which the stocks exist. You can also include the maturity time, expiration and resale of the stocks if you require.
- Date when the transfer of the stock is made:
You need to clearly mention the date on which you are signing this transfer form and giving the rights and ownership of your stocks to the buyer.
- Mutually agreed rate per stock:
Clearly mention the rate of each stock that the buyer is agreed to pay you along with the lump sum amount of payment for the stocks that you are transferring to him. If you want, you can also include the clause about the payment schedule that you both agreed to i.e. full payment within 6 months or installments before 5th of each month etc.
- Resale of the stocks to another person:
If it doesn’t matter to you that the buyer resale the stocks to anyone he wants, there is no need to add this clause in the form but if you want the buyer to resale the stocks to only specific type of buyers, you need to add this term in the transfer form.
Here is preview of a Free Sample Stock Transfer Form created as fillable PDF form,
Here is download link for this Stock Transfer Form,