Transfer Agent

A transfer agent is a company that maintains records of who owns shares of a particular company and facilitates the transfer of those shares between buyers and sellers. Transfer agents also provide other services to companies, such as issuing stock certificates, keeping track of dividends, and handling proxy voting.

Transfer agents are typically hired by companies to perform these services. The company pays the transfer agent a fee for its services. Transfer agents are regulated by the Securities and Exchange Commission (SEC).

The transfer agent maintains a record of all shareholders of a company. This record includes the shareholder's name, address, and number of shares owned. The transfer agent also maintains a record of all transactions involving shares of the company, such as purchases, sales, and dividends.

When a shareholder sells their shares, the transfer agent transfers the shares to the new owner. The transfer agent also sends the new owner a new stock certificate.

When a company pays a dividend, the transfer agent sends the dividend to the shareholders. The transfer agent also keeps track of the number of shares outstanding and the par value of the shares.

Transfer agents also handle proxy voting. When a company holds an annual meeting of shareholders, shareholders can vote on important issues, such as electing directors and approving mergers. Shareholders can vote by proxy, which means they can authorize someone else to vote on their behalf. The transfer agent is responsible for collecting proxies from shareholders and delivering them to the company.

Transfer agents play an important role in the securities industry. They help to ensure that the transfer of shares is smooth and efficient. They also help to protect shareholders by keeping track of their shares and ensuring that they receive dividends and other benefits.