A Bill of Sale for Stock is a document that acts as a legal evidence for the transfer of any named stock and number of shares from the seller to the buyer. Any stock buyer who possesses a well-executed bill of sale for the transfer of a named stock is free from any future unwarranted occurrences such as a claim or liability relating to any defect to the ownership of the stock before being sold to the buyer.
If after the named stock has been duly transferred to a buyer through a valid trade contract any third party brings any encumbrances, the duly signed stock bill of sale contract provides a remedy to the buyer and any other subsequent legal buyer of the stock to the extent that they are fully protected and the seller must indemnify them against all adverse claims.
However, it is the duty of any prospective buyer to ensure that the seller truly has a valid ownership claim to the named stock.
How to Write : Stock Bill of Sale Form
Step 1: Enter the consideration for the sale contract in the first line of the form. The consideration is the amount of money mutually agreed on both by the seller and the buyer as the total payable for some units of the stock.
Step2: Enter the legal name of the seller followed by the address of the seller
Step 3: Enter the legal name of the buyer in the next space on the bill of sale for stock form followed by the address of the buyer
Step 4: Provide the details of the stock in terms of the name of the company and include the total number of shares being sold and bought
Step 5: To add legal effect to the bill of sale for stock form, both the seller and the buyer must duly sign the form and enter the date for the transaction.
Getting two people to witness the transaction by signing the document is very important but if you are able to get a notary public to witness on the form by signing it, that is pretty adequate.