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+--- Thread: Is it legal to invest in the stock market threw a friend? (/thread-50816.html)
Is it legal to invest in the stock market threw a friend? - Tristan - 12-13-2012 07:03 PM
I have a friend who has a stock market account, and I have been wanting to invest in the stock market, but I have been to lazy to actually set up a account with etrade or anybody. So I was talking it over with him, but I want to know, is it ok if I give him per say 150 dollars and tell him what I want to buy, and he buys it for me, and I tell him when to sell, and he sells it for me? I would like to know if this would be legal or not, before actually doing it. Thanks!
- bob sacamano - 12-13-2012 07:11 PM
It's absolutely legal; the question is do you trust your friend to do right by you?
- Donald - 12-13-2012 07:11 PM
Yes it is 100% legal however if he decides to stiff you if you make money you will have no proof that the money was yours since it is in his name, On top of that he could tell you it was invested and never invest it. I say save your $150 or open your own account
- The Old Guy - 12-13-2012 07:11 PM
NO it is not legal for you friend to go this for you
Under Federal law when you friend opened the account he titled the account in his name and signed a binding contract with the firm that the owner(s) so the account will be those titled on the account. All the assets/monies that go into this account is his and hew has rightful ownership of such assets
The firm will use his social security number and report all sale transaction to the IRS and you friend will need report all his gains/losses under his Soc Sec.#