After the sale of a "registered" security has been effected upon the London Stock Exchange, one of the steps necessary for the final consummation of the bargain is the drawing up of a transfer deed. The broker, representing the actual owner of the security, fills out a form which varies according to the conditions exacted by the different companies whose securities are concerned. In the deed, the seller agrees, in consideration of a mentioned sum of money, to sell to the purchaser a given amount of stock or number of shares in the company mentioned. The buyer agrees to accept them, subject to the conditions on which they are owned by the seller. This document is signed and sealed by both parties, and witnessed.

By having the signature of the party to whom the stock is to be transferred included in the deed, it relieves the seller from any further liability on account of the security not being fully paid or otherwise.

The consideration mentioned may or may not represent the actual price received by the seller, because on account of the fortnightly settlement plan, in vogue in London (see "Fortnightly Settling-days"), there may have been numerous transactions in the security between the actual holder and the ultimate buyer. The sum inserted in the deed is that paid by the final purchaser, due to the fact that the stamp duty must be assessed upon this latter amount.