Transfer Agent

A transfer agent is a financial institution or trust company responsible for maintaining records of a company's shareholders, handling the issuance and transfer of shares, distributing dividends, and managing lost or stolen stock certificates. Transfer agents ensure that shareholder information is accurate and up-to-date, facilitating communication between the company and its investors. They also manage stock splits, mergers, and other corporate actions.

Example

A transfer agent updates the shareholder records of a company after a stock transfer, ensuring the new owner receives dividends and official communications.

Key points

• Manages the issuance, transfer, and recording of shares for publicly traded companies.

• Responsible for distributing dividends and handling lost or stolen certificates.

• Facilitates shareholder communication and corporate actions like stock splits.

Quick Answers to Curious Questions

What role does a transfer agent play in shareholder services?

They manage shareholder records, handle the transfer of shares, and distribute dividends, ensuring accurate communication between companies and shareholders.