# Can individuals sell stock directly to each other?

**URL:** <https://boards.straightdope.com/t/can-individuals-sell-stock-directly-to-each-other/603036>\
**Category:** Factual Questions\
**Created:** [November 15, 2011, 6:32pm UTC](https://boards.straightdope.com/t/can-individuals-sell-stock-directly-to-each-other/603036 "2011-11-15T18:32:19Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![DCnDC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dcndc/32/2842_2.png) [@DCnDC](https://boards.straightdope.com/u/DCnDC)\
**Post date:** [November 15, 2011, 6:32pm UTC](https://boards.straightdope.com/t/can-individuals-sell-stock-directly-to-each-other/603036/1 "2011-11-15T18:32:19Z")

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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?

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**Author:** ![SmellMyWort](https://avatars.discourse-cdn.com/v4/letter/s/ea5d25/32.png) [@SmellMyWort](https://boards.straightdope.com/u/SmellMyWort)\
**Post date:** [November 15, 2011, 6:34pm UTC](https://boards.straightdope.com/t/can-individuals-sell-stock-directly-to-each-other/603036/2 "2011-11-15T18:34:00Z")

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You would need to have the physical stock certificate.

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**Author:** ![butler1850](https://avatars.discourse-cdn.com/v4/letter/b/779978/32.png) [@butler1850](https://boards.straightdope.com/u/butler1850)\
**Post date:** [November 15, 2011, 6:36pm UTC](https://boards.straightdope.com/t/can-individuals-sell-stock-directly-to-each-other/603036/3 "2011-11-15T18:36:05Z")

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Yep. Here is some more info: [http://www.ehow.com/how\_4613835\_transfer-stock-ownership.html](http://www.ehow.com/how_4613835_transfer-stock-ownership.html) Just takes more effort in some ways, but the commissions are much lower.

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**Author:** ![Alley\_Dweller](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alley_dweller/32/430_2.png) [@Alley\_Dweller](https://boards.straightdope.com/u/Alley_Dweller)\
**Post date:** [November 15, 2011, 6:39pm UTC](https://boards.straightdope.com/t/can-individuals-sell-stock-directly-to-each-other/603036/4 "2011-11-15T18:39:51Z")

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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.