1. The transfer of an asset or security from one owner to another. A legal transfer means that something of value has been given in exchange for the financial instrument. For example, one common exchange is money for a stock. The transaction is thus called a legal transfer. 2. A transfer of a registered security that requires documentation (in addition to stock and bond power) before being valid. For example, in order for the securities registered to a deceased person to be transferred to one's beneficiaries, the beneficiaries must obtain supporting documents for those securities in order to complete the legal transfer. Responsibility for providing documents falls on the selling broker and not the buying broker.