That’s it. Probably a stupid question with a simple yes/no answer but that combination of words yields no useful results in Google.
So… can individuals sell stock directly to each other sans broker, like one would sell a lawnmower to a neighbor, or is that illegal? Is it even possible?
You would need to have the physical stock certificate.
Yep. Here is some more info: http://www.ehow.com/how_4613835_transfer-stock-ownership.html Just takes more effort in some ways, but the commissions are much lower.
Of course.
If you have the stock certificate, there is a space on the back where you can “endorse” it. Just fill it out, have your signature guaranteed by bank or brokerage, mail it to the company’s transfer agent, and a new certificate in the name of the new owner will be issued.
If you don’t have the certificate, your broker can arrange to have your shares transferred to someone else’s account (for a fee).
If it’s a book-entry-only security, the custodian can set up an account for the new owner or transfer to the new owner’s brokerage account.
Unless it’s some kind of restricted security, it’s perfectly legal.