Stocks and Stock Transfers

Stocks and Stock Transfers


Welcome to LawShelf’s video-course on stocks and stock transfers. In this course, we’ll explain what stocks are, how they are generated and registered, the rights and responsibilities that accompany stock ownership and how stocks are transferred. This is an intermediate-level course and we recommend first taking the LawShelf course on business organizations.

The course opens with a discussion of stock certificates and how they are issued and registered. We’ll also discuss classes of stock and the basic landscape of how stocks and securities are regulated under federal and state law.

In module 2, we’ll look at stockholder rights. These include the rights to vote, sell shares and receive dividends and/or the company’s assets upon dissolution. We’ll also look at the stockholder’s rights to inspect the company books and bring shareholder derivative lawsuits when necessary.

Module 3 covers stock issuances and purchases. We’ll cover the roles of stock brokers and how stocks must be registered. We’ll also look at various types of stock purchase plans.

Module 4 turns to stock transfers. We’ll examine the right to transfer shares and common transfer restrictions in operating agreements and bylaws. We’ll also look at the formalities of transferring shares, including the transfer on death rules. Finally, we’ll look at gift transfers of stock and when those can qualify as charitable contributions.

Our final module will look at the tax implications of selling stock. We’ll focus on explaining long- and short-term capital gains and losses and also look at qualified and non-qualified dividends.

When you complete this course, you should be familiar with what stocks are, how they are issued and how they are transferred and sold. We also encourage you to take advantage of our other courses on business organizations and securities, for which this course may be a good building block.

Best of luck and we welcome your feedback.

What is a video-course?

A LawShelf video-course is an in-depth series of presentations on a discreet legal topic. LawShelf video-courses focus on practical legal information and applications and are each designed to familiarize the viewer with a legal topic quickly and efficiently.

Who should take a video-course?

Our video courses are designed for professionals such as attorneys, paralegals, corporate officers and financial professionals, as well as laypeople looking to deepen their knowledge of particular areas of law. The courses allow you to acquire the specific knowledge and skills that you need without the expense and time commitment of going “back to school” for a degree. 

How do I learn?

Video courses are divided into 5 or 6 modules.  Each module contains a video lesson (usually about 15 minutes long) and a series of self-test questions that you can use to practice and make sure that you understand the material.

How do I complete a video-course?

To complete a video-course, you must pass a 10-question multiple-choice examination by scoring 70% or higher.  The questions on the exam are randomly selected from the self-test question sets for the various modules. You can retake an exam as many times as you need to, though you will not get the same questions each time since the questions are drawn from an exam bank.

Is there limit to how many video-courses I can take or complete?

No. A LawShelf subscription enables you to access any and all LawShelf content, including all video-courses. You can take courses as quickly or slowly as your time allows.

Do I receive any recognition for completing a video-course?

Once you complete the course by passing the final exam, you will be awarded a digital badge to display as evidence of your training and accomplishment.

How will a digital badge help me? 

Modern educational trends are moving away from traditional classroom-based course completion models and towards skills-based education. Employers today care more about skills than ever before. LawShelf digital badges conform to the Open Badge standard and are verifiable records of your skills that can easily be shared online.

How long do I retain access to the course materials?

You retain access the modules and take the final exam as long as you are a subscriber to LawShelf.

Overview of Stock Ownership - Module 1 of 5

Stockholder's Rights - Module 2 of 5

Stock Registration and Purchasing - Module 3 of 5

Stock Transfers - Module 4 of 5

Tax Implications - Module 5 of 5

Final Exam only needs to be taken by those seeking to earn the Digital Badge credentials for this course.