If you are underage and you own stock can you get into trouble?

Question

If you are underage and you own stock can you get into trouble?

Answer 1

It depends how you received the stock.

If you opened a brokerage in your name and not in a custodian account, giving false information, yes you could be in trouble.  What you have done is fraudulently opened an account and provide fraudlent misleading information.

The brokerage firm could liquidate the account, they definitely must immediately close the account and must report you to the reporting agency.

If you received the stock as a gift, you can have it properly and legally registered by submitting it to the transfer agent along with a copy of your birth certificate and written instruction to re-register into custodian account,

Answer 2

No.

Answer 3

For what? It's not against the law to own stock. You may have to have your parent or guardian sign for you if you do something like transfer your stock or sell it, but anyone can own stock. At any age.

Answer 4

No. The problem is you cannot legally sign the transfer if you sell or transfer the shares. But who would know? Registrars don't keep a note of shareholders ages. But then how would you get a brokerage account? Usually brokers will sell stock say in your parents account and accept the stock out of family names. Don't let on you are underage or put anything on the transfer like "signed for and behalf of". Don't try and vote at company meetings!!

years ago before big bang and when you could legally make multiple applications for new issues we would register shares into the cat or dog's name (Fido Smith, or Whiskey Brown)