# Gifting a Disney Stock



## Emma (May 18, 2013)

I plan to purchase a Disney share as a gift for a first birthday, have a Certificate issued and get it framed. Since I have to buy this in my non-registered account and then give a signed direction to issue the share in the name of the child, should I buy some for myself too since I have to pay the trading fee anyway. Just wondering what the current views are on Disney? Too pricey?


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## MoreMiles (Apr 20, 2011)

Do you know Disney was $30 in August 2011.

http://seekingalpha.com/article/588...ess-of-the-avengers-to-future-earnings-growth

Today it is at $65. It has gone up over 100% in 2 years!!! That is like 50% per year... I simply cannot convinced myself to buy it today, when it was half price just 2 years ago! Would you?


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## daddybigbucks (Jan 30, 2011)

somebody in the states already beat you to this idea.

http://www.oneshare.com/stock/disney?gclid=CIqdktCWwrgCFe4-MgodCTMABA

$35 fee for this but then its all done and in the recipents name.


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## thompsg4416 (Aug 18, 2010)

Someone please enlighten me..and hopefully tell me I'm wrong. 

Isn't this a somewhat useless gift? I mean I love the idea but.....

Way back when I was 20 or so during the IT bubble of the 90's, I bought into some IT company that ended up going under. It was bought for tax purposes by Penn West Petroleum and out of the initial 1500 investment I have like 5 shares of PWT. Since this was the only investment I had with BMO they closed my account and sent me the actual piece of paper which says PWT 5 shares or whatever it is. 

I talked to a couple brokerages and to even cash it in they'll charge me a $200 fee - more then the shares are worth. 

So 60 years from now when this person takes their 1 share of Disney to their brokerage and asks to cash it in - the stock maybe up x10 but the fee will likely be worth more then the share.

What would be the point? I hope I'm missing something


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## james4beach (Nov 15, 2012)

Disney does look expensive to me and individual stocks like that can be problematic.

An alternate idea for a special gift, how about a gold coin? Canadian made "Maple Leaf" gold coins are recognized throughout the world, and not only are beautiful (virtually pure gold) but also a very unique and memorable monetary gift. For instance a 1/10 oz Maple Leaf coin goes for about $160.

While the price of Disney stock has literally never been higher than now, the price of gold is quite low ... about 30% below its highest price. And unlike giving the gift of stock, there is no danger that the company will go bankrupt and disappear (as so many have done).


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## Toronto.gal (Jan 8, 2010)

james4beach said:


> 1. Canadian made "Maple Leaf" gold coins are *recognized throughout the world*
> 2. While the price of Disney stock has literally never been higher than now.....unlike giving the gift of stock, there is no danger that the company will go bankrupt and disappear (as so many have done).


*1.* DIS is also a beloved/recognized/trusted name around the globe.  

*2.* Yes, like many other stocks from their 09 lows, it's at an all-time high, and myself, would absolutely not purchase at this price, but did buy in 2010 in the low $30's [it was about 1/2 that in March 09]. 

Long-term, given the creativity/business model/assets of the company & its global reach: consumer products/cruises/internet/movies/theme parks/t.v./etc., the empire & magic of DIS, most likely will continue to do very well in the high tech world that was not the case 90 or even 20 years ago, so I doubt the company could go bankrupt anytime soon.

As for the stock gift, I myself am not a fan of one time investment, although the power of a single share should not be underestimated for someone with a very long-time horizon when taking all the factors into account, ie: dividends/splits, etc. [1957 IPO = $13.88].

Interesting timeline:
http://en.wikipedia.org/wiki/Timeline_of_The_Walt_Disney_Company

Historical prices:
http://ca.finance.yahoo.com/q/hp?s=DIS


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## none (Jan 15, 2013)

I know you mean well but this gift is ridiculous. Talk about the classic 'bowling ball' gift. What does a one year old want with Disney stock?? I mean seriously? what are you thinking? Don't be one of those people.

Instead buy the kid this: http://www.amazon.com/The-Gruffalo-...=UTF8&qid=1374512331&sr=8-1&keywords=gruffalo
or this: 
http://www.amazon.com/Baby-Brains-Smartest-Whole-World/dp/0763636827
or this:
http://www.amazon.com/Oh-Places-You...&qid=1374512529&sr=1-1&keywords=dr+suess+book

See the theme? Something a child might actually want.


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## Emma (May 18, 2013)

*OK, I've had some sense knocked into me!*

I will look into the Canadian gold coin. Much easier to carry in my bag to Scotland where the little lad resides. And yes, I may invest in a real book too as I've heard some little ones don't know how to turn actual pages anymore! All that pointing and swiping. My grandkids both have framed Disney shares in their bedrooms (given by the other grandparents), that's where I got the idea. More like a framed piece of art, not really for an investment. And yes the stock is overpriced along with many others these days. Thanks for the reality check.


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## w0nger (Mar 15, 2010)

Emma, i just want you to know that they certificate really is beautiful as you have seen for yourself. Sometimes, it's not the worth of the certificate, I mean, who really cares for one share. The point is, is that the child gets to grow up in and brag that they own a little bit of Disney, a company that most likely will bring them happiness in so many other ways that it's completely priceless. It's the thought. A gold coin is no different to a child than a piece of paper, but being able to relate to disney as they age is priceless.

I like your idea as I've done it myself. I didn't buy it because it was a good investment, I bought it because of the meaning it would have to the child. I bought one for my 6 year old niece... it's priceless to hear them say "I own disney!"


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## james4beach (Nov 15, 2012)

Emma I was just pitching ideas, but if the point really had nothing to do with investment value but was purely for the stock certificate... that could still be good. Certificate are pretty neat and I see it differently now when you write "like a framed piece of art, not really for an investment"


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## none (Jan 15, 2013)

w0nger said:


> Emma, i just want you to know that they certificate really is beautiful as you have seen for yourself. Sometimes, it's not the worth of the certificate, I mean, who really cares for one share. The point is, is that the child gets to grow up in and brag that they own a little bit of Disney, a company that most likely will bring them happiness in so many other ways that it's completely priceless. It's the thought. A gold coin is no different to a child than a piece of paper, but being able to relate to disney as they age is priceless.
> 
> I like your idea as I've done it myself. I didn't buy it because it was a good investment, I bought it because of the meaning it would have to the child. I bought one for my 6 year old niece... it's priceless to hear them say "I own disney!"


In my professional experience, infants do not like framed art. Consider a toy that the child can learn to share with others.

To quote raffi:


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## atrp2biz (Sep 22, 2010)

What about dividends? Receiving $0.75 in dividends every year would be something to brag about as a five-year old.


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## none (Jan 15, 2013)

atrp2biz said:


> What about dividends? Receiving $0.75 in dividends every year would be something to brag about as a five-year old.


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## Mall Guy (Sep 14, 2011)

I like the idea . . . add one share each year, not a bad after 18 years for education (especially if it splits once or twice over that time). You can do it through most companies directly (including cashing in just the one share) . . . but $0.75 for 20 years, likely a beer on their 20th birthday :biggrin: And most one year olds just like to play with the box . . .


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## Toronto.gal (Jan 8, 2010)

If you believe DIS [or other co. for that matter] would be around the next 20/30, etc. years, a share purchased today, would not just be a single share when adding the cumulative shares. Also, keep in mind that not every split = 2:1.

A 30 year old, who was given a single share in 1983, would have 48 shares today: {1x3x4x4}

- 1986 = 4:1
- 1992 = 4:1
- 1998 = 3:1

- 1983 = 1 sh x split-adjusted price: $....
- 2013 = 48 sh x $64+ 

You might stop laughing & ridiculing the gift concept/investment, if you cared to do your own math. The longer the time horizon, the more shares of course, and some here, in fact, say that you should only invest in individual stocks if you have a 40/50 year time horizon, so someone in his 60's, who would have bought in his 20's or 30's, would today have a few hundred shares, and in worse case scenario, would have simply lost that 1 share investment. 

- 1967: 2 for 1
- 1971: 2 for 1
- 1972: 2 for 1
- 1986: 4 for 1
- 1992: 4 for 1
- 1998: 3 for 1 

Split history:
http://thewaltdisneycompany.com/content/shareholder-faqs#faq-topic-99

It would seem that another split may be coming soon [probably 2 for 1, unless shares were to go above $100 in the near future]. I also would not be surprised if the company will start paying a healthier dividend, but then again, if the stock keeps climbing, who cares much about the dividends?. I have been holding stocks for just under 4 years, and several have split, ie: POT = 3:1 [also had reverse splits, ie: C = 1:10].


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## Toronto.gal (Jan 8, 2010)

Mall Guy said:


> 1. add one share each year, not a bad after 18 years for education
> 2. (especially *if it splits once or twice over that time*).


*1.* Speaking of education, my conservative investment in 2010, would today, pay for a 4 year B.A. where I live [excluding dividends, lol, and even after taking taxes into account].
*2.* One split, however, does not necessarily mean 2:1, and how shares multiply!


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## HaroldCrump (Jun 10, 2009)

I'm personally in favor of gifting kids long-term stocks.
It helps them understand the world of business, how profit works, wealth creation, and financial independence.

The only question is what is the right age to introduce these concepts to the kids.
That obviously depends on personal situations and varies from child to child.

That said, kids should also be kids and receive normal toys, games, etc.
I try and avoid cheap plastic toys as much as possible.
And by games, I didn't mean video games but sports stuff like badminton/tennis racquets, soccer balls, a basketball net, and so on.


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## humble_pie (Jun 7, 2009)

me i think that taking a special gift such as a framed Disney share certificate or a gold coin to the parents of a newborn is a lovely & generous idea. Good on Emma.

i'm sure Emma would also take a more conventional & more disposable gift such as a onesie or a toy (although speaking of toys, whoever heard of a newborn who could "share," no matter what any "professional" opinion has to say about that).

there are negatives to both gift ideas - a share could become worthless, a gold coin could be lost - but what matters here is the honour being paid to the parents & to the tiny infant himself or herself.

speaking of newborn infants, tis a royally happy day indeed.


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## Toronto.gal (Jan 8, 2010)

HaroldCrump said:


> 1. I'm personally in favor of *gifting kids* long-term stocks....helps them understand the world of business....
> 2. The only question is what is the *right age *to introduce these concepts to the kids.
> 3. That said, kids should also be kids and *receive normal toys*, games, etc.


*1.* I am now a gifter, lol, but only wish I had started when the lil guy had been a baby; OTOH, maybe not, as he might have entertained Freedom 2E [early]. 

*2.* Of course; mine has already read several basic books/free from the library, and mostly of his choosing [not HP/TG's list yet]. But I think it can begin when they start school, even JK. If schools can include sex education at an early age, why not about investments?

*Buffett: *It’s never too early to help kids understand about money. Whether it’s understanding the cost of the new toy they want, or the value of saving money. Kids are exposed to money matters from a very young age, so why not help them understand it and develop healthy habits early on?
http://www.forbes.com/sites/michaelvenables/2013/03/27/warren-buffetts-wise-advice-on-teaching-kids/

*3.* That goes without saying though, doesn't it? Who says that children that get such gifts, that are no different than money gifts from grandparents or others for example, are the only gifts they get. :rolleyes2: Good of you to clarify! :encouragement:


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## humble_pie (Jun 7, 2009)

joke: back in the day i had a cousin who used to gift newborns & miscellaneous tots with share certificates. I think she used to clump 2 or 3 shares on one certificate.

her gilt-edged choice - for the babies already! - was always Imasco, the tobacco company.


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## Toronto.gal (Jan 8, 2010)

*no joke:* going with those no brainer-type stocks, with a long history of stock-splitting and increasing their dividends, lol, like KO. 

I'll ask my kid, who is also a visual learner, to verify the math. :encouragement:


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## humble_pie (Jun 7, 2009)

health-wise i think KO is another very poor choice for a tot gift, almost as bad as tobacco :biggrin:

maybe the problem goes something like, Will Green Stocks like Whole Foods Last 30 Years?

quaker oats might be ok for a PC gift for a newborn although there's probably lots pesticicide on them flattened grains


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## HaroldCrump (Jun 10, 2009)

Toronto.gal said:


> *no joke:* going with those no brainer-type stocks, with a long history of stock-splitting and increasing their dividends


In fact, this is my goal with my kids RESP account.
I'd like them to retain some of the RESP holdings in-kind once they start post secondary education.

There is about 12+ years of growth/compounding left for their RESPs.
They can almost roll some of the long term holdings into their own non registered accounts right afterwards.
Or, their TFSAs (assuming it is still alive and well at that time).


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## humble_pie (Jun 7, 2009)

HaroldCrump said:


> In fact, this is my goal with my kids RESP account ... They can almost roll some of the long term holdings into their own non registered accounts right afterwards. Or, their TFSAs


it seems to me that the power of the late adolescent/young adult to rebel, mutiny & go in the opposite direction to what a parent might have strictly planned knows no bounds


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## Spudd (Oct 11, 2011)

humble_pie said:


> quaker oats might be ok for a PC gift for a newborn although there's probably lots pesticicide on them flattened grains


Quaker Oats is owned by Pepsi.


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## HaroldCrump (Jun 10, 2009)

humble_pie said:


> it seems to me that the power of the late adolescent/young adult to rebel, mutiny & go in the opposite direction to what a parent might have strictly planned knows no bounds


Yes, I have considered that possibility as well, and indeed it could turn out that way too.
After all, I didn't turn out exactly as my parents intended either ;o)

Kids might end up consuming the products of KO and PM instead of owning the stocks.


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## Emma (May 18, 2013)

Love the feedback! Its almost as entertaining as Disney. Yes I did buy the obligatory Canada hoody and a large piece puzzle. I am wondering if none and thomps have "no issue"?


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## none (Jan 15, 2013)

I'm not sure what you mean?


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## Toronto.gal (Jan 8, 2010)

HaroldCrump said:


> After all, I didn't turn out exactly as my parents intended either ;o)


Not exactly, only better! 

*Emma:* you're right about the Disney part. :wink:


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## Mall Guy (Sep 14, 2011)

humble_pie said:


> joke: back in the day i had a cousin who used to gift newborns & miscellaneous tots with share certificates. I think she used to clump 2 or 3 shares on one certificate.
> 
> her gilt-edged choice - for the babies already! - was always Imasco, the tobacco company.


Well they did own Shoppers Drug Mart for quite sometime . . . lot's of diapers, sold to KKR and then an IPO at $18 (now $60) . . . as well as Canada Trust . . sold to TD . . . Genstar to Empire . . . after Imperial was sold to BAT . . . _those tots just might be able to buy tiaras!!!_


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## humble_pie (Jun 7, 2009)

mall guy! i've always wondered why my 4th cuz twice removed had those wry necks & twisted little humpy backs

they had to practice wearing em around the house


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## jcgd (Oct 30, 2011)

My grandparents gave me Canada savings bonds and the $1800 I got over 18 years turned into quite a bit of moola. I kind of wish they went with RBC stock or something instead because it would have been a lot more money, but beggars can't be choosers. 

I'm just glad they didn't get me toys all those year. The only toys I have left from childhood are a teddy bear that sits in a closet at my mother's, and a hand made magic trick from my great Grandfather. Both have sentimental value, neither are worth $30 000.


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## thompsg4416 (Aug 18, 2010)

Emma said:


> Love the feedback! Its almost as entertaining as Disney. Yes I did buy the obligatory Canada hoody and a large piece puzzle. I am wondering if none and thomps have "no issue"?


Emma I actually love the idea of the Disney stock. I'd buy my kid and all my relatives kids one if I knew they could cash it some day without a problem. Kids have all kinds of toys. In fact if your grand kids are like mine they have too many. Although they don't appreciate investments now - they will when they are old enough to start wanting money. 

In fact when I posted I was really hoping someone would correct me. I have that stupid penn west pet stock cert sitting in my office collecting dust. I really have no idea what to do with it


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## humble_pie (Jun 7, 2009)

thomps here's a nutty idea but it might work.

doesn't penn west still trade in toronto?

ok deliver the 5 shares to the broker. Line up your advanced charts & buy 95 more shares when they're looking short term favourable. Keep fingers crossed that stk will tick slightly up, enuf to cover cost of the commish. Then sell 100 shares.

if it doesn't tick up, sell anyhow.

same idea as gambitting.


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## thompsg4416 (Aug 18, 2010)

Broker(questrade) wants over 200 bucks to process the transaction. The stock is worth about 40. I'm actually owed years of dividends which should work out to a few bucks. This whole conversation just motivated me to contact the transfer agent and ask how I can at least get the dividends owed to me, how I can start collecting the dividends regularly and how I can cash this out without incurring a fee worth more then the investment. 

If I can at least start collecting a div cheque as small as it maybe, I may transfer it to one of my sons or have it framed and gift it


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## Emma (May 18, 2013)

None, for your info, I meant issue in the legal sense...kids, grandkids.....commonly used in a Will - to my issue in equal shares etc. 

Thomps. we too have a Certificate for 200 shares of Barymin Explorations bought about 35 years ago on a hot tip. Just gave me an allergy to investing in any company containing the word "Explorations".


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## humble_pie (Jun 7, 2009)

thomps i seem to recall that questrade has always had a uniquely cuckoo high price for transactions involving registered share certificates. 

other brokers charge zero up to possibly a modest fee. I did just check with a large bank-owned broker, they would not charge anything to accept your 5-share certificate. They would then de-register the shares & either hold them in street form or sell them as you might instruct, without any additional fee.

if such a broker were to hold, i'm assuming they would also properly collect the dividends on your behalf.

all this being said, i can see that you might still have a dilemma, because you might not want a 2nd brokerage account & i doubt another broker would accept to open an account that would consist of one single 5-share sale.

another solution might be to find a charity that is able to accept the shares. This should be a big charity, one with endowment portfolios, fund managers & experience with stock donations. For example Red Cross or principal university or hospital in your home town. Do not choose a small charity for this initiative.

there will be a way - on the back of the share certificate - to make the certificate over to a 3rd party. The charity will probably be able to help you with advice & tips (this is where their experience will count) while any transfer agents or other financial institutions along a donor chain in canada usually don't charge for donation transactions.


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## Toronto.gal (Jan 8, 2010)

thompsg4416 said:


> 1. Although they don't appreciate investments now -
> 2. I have that stupid penn west pet stock cert sitting in my office collecting dust.....I really have no idea what to do with it
> 3. Broker(questrade) wants over 200 bucks to process the transaction
> 4. I'm actually owed years of dividends which should work out to a few bucks.
> 5. the stock is worth about 40.


*1.* The idea is naturally not that they will appreciate/understand them at birth, but to get them interested once they learn how to speak at least, and what a difference such an interest could make in their adult lives! I wish I had been interested in this when I was 7, instead of in Tutankhamun, lol. 

*2.* Get a nice frame from Michaels, 'where creativity happens', and frame/decorate your investment/study room with it! Given that they cost me $50 each, might as well make them useful for now, hence I framed them all!

*3.* Highway robbers if you ask me. 

Most brokers charge $50 instead of $200 to issue the certificate, but I believe it's free when presenting the certificate that you already have, collecting dust AND paid for [though in your case, BMO may not have charged you, but same difference]. Not sure why Questrade would charge so much for the latter when all they have to do is enter them in their system once you would show proof of ownership, ie: surrender the cert. 

I wonder if they would also charge as much, or at all, for electronic transfer of shares [as opposed to certificated]. You could ask CST if your PWT shares could be converted electronically [book-form], and then ask your broker whether they would receive the shares for free in that manner, but my understanding is that not all companies consent to the DRS system. I have never sold nor have any intentions to sell the shares I hold with CST/Computershare, so I'm not 100% clear on all the required steps, but I don't have to worry about this for several more years.

I'm not sure about CST, but I know Computershare can sell 'full non-certificated' shares for a small fee, giving you the partial ones in cash. However, PWT is with CST, and your shares are certificated, so it does not help you.

*4. * If you have not been receiving dividends in cash all this time, would you not have been reinvesting them? If the latter, you may have more than 5 shares.

I don't follow PWT, but if it's a good company, why not enrol in their OCP plan, which allows you to buy shares commission-free. Oh, I just noticed that the minimum is $500 and on a quarterly basis [I prefer the monthly options available with other companies for ACB reasons, and with lower minimums, although it's not guaranteed that 12 payments are better than 4, still, I'm a fan of tranche buying in volatile times].

https://www.canstockta.com/issuerDetailsTemplate.do?companyCode=6004

*5.* If you have 5, then you're richer than you think [trading currently just above $13]. :encouragement:


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## Synergy (Mar 18, 2013)

Okay, I'm thinking of gifting some shares of Disney to my two nieces (7 & 12). Would it be possible to set them up with the direct purchase plan through Disney? Minimum investment amount ($250) seems very reasonable. There appears to be a lot of additional plan fees but overall it still looks like a decent option. I'd prefer to stay away from gold or silver coins, something they could easily lose.

https://stockplans.broadridge.com/Plan/Summary?planId=104

This way they can DRIP partial shares and at the same time I could encourage other family members help the children grow their investments? I know a diversified ETF would be a better / "safer" option, but they're kids, and it's Disney! One way or another they'll learn a valuable lesson on my dollar. Thoughts? I could still create some form of a certificate for them so they have something tangible to see.


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## majudy (Mar 10, 2018)

none said:


> In my professional experience, infants do not like framed art. Consider a toy that the child can learn to share with others.
> 
> 
> Geez, Senior Member, what kind of sad existence do you live? And what exactly is your 'professional experience'? Of course infants (and the children they quickly grow into) like art. They like anything with shape and colour. And gifting an investment to a child is not ridiculous - it shows an interest in their future. Hence, the many parents and grandparents who give their children/grandkids RRSP contributions, gold coins, stamps, etc. Do you have any family at all? If so, I pity them having to deal with your judgmental nature.


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## olivaw (Nov 21, 2010)

Welcome to the forum Junior Member. Thank you for resurrecting this thread from 2014. It's a walk down memory lane. 

Going after "Senior Member" in your very first post is a bold way to introduce yourself. Good job.


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