I m interested in getting my grandson started in DRIPs. How can I go about giving him DRIPs as a holiday gift?
A It s becoming more common for parents and grandparents to forgo the music CDs and video games to purchase gifts of stock for their children and grandchildren. It s very easy to give the gift of DRIPs. One way is by transferring some shares you may have in a DRIP to another party. This is the easiest and quickest way to enroll someone in a DRIP. The process of transferring shares is relatively simple, although it may differ slightly depending on the company and its transfer agent. Generally speaking, individuals who want to transfer shares need to obtain a “stock power” form from a brokerage firm or bank that conducts transfers. Fill out the “stock power” form and include the name, address, and social security number of the individual to whom you are transferring the shares. You must have a “medallion” signature guarantee on the stock power. This guarantee is usually available at a bank or brokerage firm. When you have completed the form and obtained a “medallion” signature guarantee,
