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.

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RELATED FAQS
  1. I lost my share certificate. Do I still own the stock?

    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order ... Read Answer >>
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