DEFINITION of 'Transfer Procedures'
The procedure by which ownership of a stock moves from one party to another. The transfer agent follows a detailed, documented series of steps governed by the SEC to ensure that a transaction has been completed.
BREAKING DOWN 'Transfer Procedures'
The transfer agent has record of the personal details of an owner of a share. And when a share's ownership changes, the transfer agent cancels the stock certificate of the seller and makes a new stock certificate for the buyer.