Stocks, bonds or any other securities can be transferred as gifts. Giving the gift of stock also has benefits for the giver. If the stock has appreciated in value, the holder can avoid paying the capital gains tax by giving it as a gift. There are two methods in transferring the ownership of a stock, which depend on how it is currently being held. Now-a-days stocks are hold in electronic form (and not in physical form) which stored in a brokerage account. To gift his stock, the owner should gather the brokerage account information of the person/party they are gifting. The next step is to contact the gifter's broker, pass on the new account information, and order the electronic transfer to the other person/party.