Can kids (10 yr old) buy stock under their name in California?

Question

I'm encouraging my daughter to invest in stocks (like DIsney etc) just to start saving at a young age. Can she get an account to by stocks under her name? Is that taxable to me (the parent) ?

FYI. I have mutual funds and college funds open for my kids already, I just want then to have their own stock portfolio uner their name. Does anyone know?

Answer 1

This should be done through an investment firm where you can confer with a broker that is assigned to handle your account. Your name will be on the account as the guardian, and you will request the buy and sell orders. However, your daughter's name will be on the account.

Answer 2

I think you received some good useful information, but I think "A Nobody" summed it up for you,

Not only did Theodore B give you incorrect information, I would argue that First Trade is not the better of the firms, they don't have their own clearing and are dependent on another firm, they are smaller and offer less products that a Schwab, TDAmeritrade, Scottrade or even E-Trade

Answer 3

It's an excellent idea to have your daughter start investing at an early age.  With more and more college students investing these days, having your daughter learn earlier will give her the experience she will need in the future.

Kids under the age of 18 years old cannot open an individual brokerage account.  However, this doesn't mean that they can't trade stocks under their names.  Instead of opening an individual account, kids can open a custodial account and have one of their parents cosign it with them.

I would recommend that you have them open an account at a discount online broker because they are cheaper than full-service ones, which are unnecessary if you want to be making all the decisions.  In addition, trades can be done conveniently online, which seems to be the preferred method for younger generations.

I don't know which brokerage firm you are currently using, but I would definitely recommend using Firstrade ( http://www.firstrade.com/ ).  They are cheaper than the big name brokers like Scottrade, Etrade, TD Ameritrade, and Schwab.  Their website is also very easy to use and perfect for beginners like your daughter.  I've been using them for years and have not encountered any problems whatsoever.  I would definitely recommend that you check them out.

Answer 4

Any one under the age of 18, regardless of what state they live, can not have anything registered in their name.

The stock should be registered Your name as custodian for Daughter's name, using the child's social security number,

Having any account and/or security in the name of a minor is very foolish, not practical and illegal.

If you are going to teach you children how to invest, or the value of assets, it would be better if you first teach them to abide by the rules and regulations governing securities and obeying the law. - Yes, I know for sure

Theodore B - you are giving bad and incorrect advice. Minors can not enter transactions nor have a parent "co-sign" for them, this is illegal under all state laws and securities law  Minors CANNOT open a custodian account or any other account.