Often, people think that the transfer and transmission of shares are similar to selling them. But that is not the truth. A transfer of shares happens when you transfer the ownership from your title to another. You will do so willingly, like to someone close to you or another family member. There will be no concept of purchasing or selling the shares. Therefore, the liquidity pool does not receive shares during transfer.
Transmission of shares, on the other hand, happens under company laws. This statement implies that the shares under one name will be transferred to another involuntarily. No one can control the title change of the shares. In addition, a few laws will govern the entire process, ensuring no one can claim the shares illegally. For instance, if someone dies, the transmission of shares takes place automatically to the nominee.
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