Key Takeaways
- A transfer agent plays a vital role in acting as a liaison between a company's registrar and an investor.
- Transfer agents closely maintain an investor's account balances and electronically maintain certificates of security ownership.
- Stock transfer agents make sure shareholders receive dividend payments in a timely manner.
Full Answer
How do I find a stock transfer agent?
A stock transfer agent is a financial institution which maintains records of investor holdings in a public company. The agent is responsible for issuing and cancelling stock certificates as shares are bought and sold, for replacing lost documents and for distributing cash and stock dividend payments to shareholders.
How to choose a stock transfer agent?
Nov 24, 2003 · A transfer agent plays a vital role in acting as a liaison between a company's registrar and an investor. Transfer agents closely maintain an investor's account balances and electronically maintain...
What are the responsibilities of a transfer agent?
A stock transfer agent acts as the official record keeper for publicly traded companies to track the individuals and entities that own stocks and bonds in the company, as well as how many units each investor owns. Most transfer agents are banks or trust companies, but a company may also act as its own transfer agent. While this function requires a stock transfer agent in the US, …
What is a free receive in a stock transfer?
Transfer Agents. Transfer agents work for the security issuer to record changes of ownership, maintain the issuer's security holder records, cancel and issue certificates, and distribute dividends. Transfer agents are usually banks or trust companies, but sometimes a company acts as its own transfer agent. Transfer agents are required to be registered with the SEC, or if the …
What is a stock transfer agent used for?
Transfer agents keep records of who owns a company's stocks and bonds and how those stocks and bonds are held—whether by the owner in certificate form, by the company in book-entry form, or by the investor's brokerage firm in street name. They also keep records of how many shares or bonds each investor owns.
What's the difference between a broker and a transfer agent?
Transfer agents maintain a record of ownership, including contact information, of an issuer's registered shareholders. Brokers maintain the records of beneficial shareholders.
How much does a stock transfer agent cost?
Transfer Agent Fees To Issue Registered Stock CertificateCompanySymbolTransfer Agent FeeAlibaba GroupBABA$25AlphabetGOOGL$0AmazonAMZN$25AMCAMC$093 more rows
What is an example of a transfer agent?
Some examples of transfer agents are financial companies, trust companies, banks or individuals. Listed firms often assign the management of their shareholders' data to a transfer agent. For instance, Amazon's transfer agent is Computershare.
Can you sell stock at a transfer agent?
Sell Shares to Transfer Agents You can sell your shares directly to the transfer agent. If you have possession of the stock certificates, you'll need to sign them and send them to the transfer agent, along with whatever paperwork the agent needs.Apr 25, 2019
How do transfer agents make money?
Transfer agents pay distributions to investors, based on the registrar's records. For example, transfer agents send interest payments to bondholders, as well as the face value of their bonds, once they reach maturity.
How do I find a stock transfer agent?
Most issuers identify their transfer agent on their company website under the “Investor Relations” tab. You may need to contact the company directly to obtain the transfer agent's name and contact information.
Who is Gamestop transfer agent?
computershare.For Transfer Agent Matters: Website: www.computershare.com. Phone: (800) 522-6645.
Does Computershare charge a fee?
A service fee of $15.00 plus a processing fee, currently at $0.12 per each whole share and fraction sold, will be charged for each sale. The pro- cessing fee includes any applicable brokerage commissions Computershare is required to pay.
Who are the biggest transfer agents?
Computershare holds 56.4% of the market share, followed by Equiniti Trust Co (19.2%), American Stock Transfer & Trust (15.6%), and Broadridge (7%). These four transfer agents account for over 98.2% of the S&P 500 market.Dec 21, 2021
Do you need a transfer agent?
For private companies, all the basic functions of a transfer agent are needed—maintaining the official record of ownership, issuing stock certificates, cancelling stock certificates, exchanging or converting securities, and managing distributions to stockholders—but it's not required that they be performed by a ...
Is a transfer agent a custodian?
Transfer agents handle the direct responsibility for shareholder purchases and sales of mutual fund shares. The custodian then records these transactions without fund manager involvement. Custodians report these transactions to fund managers so they can continue to keep fund assets and fund cash positions healthy.Feb 5, 2019
What is a transfer agent?
A transfer agent play s a vital role in acting as a liaison between a company's registrar and an investor. Transfer agents closely maintain an investor's account balances and electronically maintain certificates of security ownership.
What is mutual fund transfer?
Mutual fund transfer agents differ from stock transfer agents in that the former never issue physical certificates, where the latter must do so, on shareholder request. However, mutual fund transfer agents perform many other important tasks, like maintaining records of shareholders' accounts, overseeing dividend payments, and responding to shareholder requests for account statements, income tax forms, and transaction confirmations.
What is a book entry certificate?
Today, transfer agents issue certificates in book-entry form —an electronic method of recording securities ownership that saves vast amounts of time and money. These book-entry securities vary depending on the investment.
What does a common stock shareholder vote on?
Common and preferred stock shareholders have the right to vote on major corporate decisions, such as merger activities and the sale of companies. These votes are facilitated through transfer agents who send proxy information to shareholders.
What is the fiduciary responsibility of a company?
It's part of the company's fiduciary responsibility to its shareholders to ensure that all investor records, account balances, and transactions are safeguarded and accurately tracked.
Who is James Chen?
James Chen, CMT, is the former director of investing and trading content at Investopedia. He is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is an Accounting and Finance Professor with a passion for increasing the financial literacy of American consumers.
Do shareholders get accurate information?
All shareholders are entitled to accurate information about their investments. While some corporations choose to act as their own transfer agents, other companies decide to use third-parties like trust companies, banks, or similar financial institutions. These companies receive fees for their services.
What does a stock transfer agent do?
A stock transfer agent acts on behalf of a company to manage changes in the ownership of publicly traded stocks and bonds, as these are bought and sold, and maintains a register of ownership. This administrative service helps companies keep track of the individuals and entities that own their stocks and bonds.
What is a medallion signature guarantee?
This guarantee is one of several special certification stamps that guarantees a signature and authorizes a transfer of securities as authentic. Signatures on a stock certificate must have the medallion guarantee.
What is the Direct Registration System for shares?
Aside from holding hard copy stock certificates or street name registration, as discussed earlier, investors can choose a third option: direct registration. The Direct Registration System (DRS) enables the electronic transfer of securities back and forth between the issuer and the investor’s broker-dealer.
What is the difference between a stock transfer agent and a broker?
Generally, transfer agents maintain a record of ownership, including contact information, of an issuer’s registered shareholders while brokers act as a custodian and maintain their own records of who the beneficial shareholders are of the shares registered under their street name.
Stock transfer agent US market share
The US market is dominated by a handful of transfer agents with little change in the pecking order over the last eight years.
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What is a transfer agent?
A transfer agent is a financial services company that manages and keeps track of registered shareholders for companies that issue stock.
What is a registered shareholder?
Registered shareholders are individuals or entities who purchased or were issued stock directly from the company. They are individually listed by name as "shareholders of record" on the company register, which is managed by the company's transfer agent.
What does "nobo" mean?
By default, they are non-objecting beneficial owners (or NOBO) meaning their name, share position and address are shared with the companies they've invested in. Beneficial shareholders must specifically opt out, becoming an objecting beneficial owner (or OBO) to have their information withheld.
What is transfer agent?
Meaning of Transfer Agent 1 A transfer agent manages the records of an organization’s shareholders by acting as an intermediary between the two. Examples include financial companies, trust companies, banks or individuals. 2 They are responsible for recording and updating shareholders’ names, addresses, contact details, dividend information, issue and cancellation of new share certificates, etc. 3 They maintain shareholders’ records, cancel and issue new share certificates whereas a registrar registers the details when shares are issued in an authorized register on behalf of the company.
What is the responsibility of a transfer agent?
One of the most crucial responsibilities of transfer agents includes the timely payment of the dividend. Dividend Dividend is that portion of profit which is distributed to the shareholders of the company as the reward for their investment in the company and its distribution amount is decided by the board of the company ...
What are some examples of transfer agents?
Some examples of transfer agents are financial companies, trust companies, banks or individuals. Listed firms often assign the management of their shareholders’ data to a transfer agent. For instance, Amazon’s transfer agent is Computershare. Amazon has provided its shareholders with the agent’s contact details to help them update their names, ...
What is a transfer agent and registrar?
A registrar and a transfer agent are both authorized to assist the firms and investors in recording shares and shareholder related data. Their roles overlap, and companies often appoint any one of the two to perform all the roles. The few differences between the two are listed below.
What is a shareholder?
Shareholders A shareholder is an individual or an institution that owns one or more shares of stock in a public or a private corporation and, therefore, are the legal owners of the company . The ownership percentage depends on the number of shares they hold against the company's total shares. read more. .
What is a stock certificate?
Share Certificates Stock Certificate, also called a Share Certificate, is a legal document evidencing the ownership of stocks in a Company, including details like the stockholder’s name, issuing date, the total number of stocks issued, identification number, and the corporate seal & sign. read more. .
What is a stock split?
Stock Stock split, also known as share split, is the process by which companies divide their existing outstanding shares into multiple shares, such as 3 shares for every 1 owned, 2 shares for every 1 held, and so on.
What is a transfer agent?
Transfer agent or stock transfer agent is the term used in the United States and Canada. Share registry is used in the United Kingdom, Australia and New Zealand. Transfer secretary is used in South Africa. A company may act as its own transfer agent or engage a third-party company to perform shareholder registry services.
Why do public companies use transfer agents?
Public companies typically use transfer agents to keep track of the individuals and entities that own their stocks and bonds. Investment funds may also use transfer agents to manage their shareholder registry although only some legal structures are required to do so.
How do transfer agents keep records?
Transfer agents keep records of who owns a company's stocks and bonds and how those stocks and bonds are held—whether by the owner in certificate form, by the company in book-entry form, or by the investor's brokerage firm in street name. They also keep records of how many shares or bonds each investor owns.
What is street name stock?
The shares are issued in " street name " which is the term given to securities held in the name of a financial intermediary (such as brokerage, custodian bank, securities depositary, or a nominee of any of them) on behalf of a customer, usually done to facilitate subsequent transactions. Shares held in "Street name", usually Cede & Co., refers to shares which have a beneficial shareholder who maintain their ownership indirectly through a brokerage. Street name holders are not registered holders; they must exercise shareholder rights by obtaining proxies from the legal entity which is a holder of record.
What is a medallion signature guarantee?
This is often referred to as a "Medallion Signature Guarantee". A signature guarantee is a warranty by the signature guarantor that the endorser of a stock certificate or stock power form is an appropriate ...
What is authorized stock?
Authorized stock is the stock, limited to a fixed amount, the corporation may legally issue, pursuant to its corporate charter. The amount of authorized stock a corporation may issue never changes, unless the charter or articles of incorporation or other appropriate governing document is modified. Such modifications may require shareholder approval.
What is Treasury stock?
Treasury stock consists of shares that have already been issued, but have been bought back from the shareholders by the corporation. These shares are considered issued but not outstanding. Some states (e.g., Massachusetts) may not recognize the validity of treasury stock.
When should I send out proxy materials?
Issuers electing to send a full set of proxy materials should send them out to shareholders approximately five weeks before a shareholder meeting , to allow sufficient time for shareholders to review and act.
What is an issue and outstanding stock?
Issued-and-outstanding shares are shares of authorized common stock issued to shareholders. Unissued shares are authorized shares of common stock not yet issued by the corporation and held in reserve for future use, such as for a secondary issuance, stock options or dividends.
What is post IPO mass sales?
Post-IPO mass sales are known as secondary offerings: Proceeds go to the company.
What are the two types of shareholders?
There are two types of shareholders: registered and beneficial. Registered shareholders, also known as “shareholders of record,” are people, groups or entities that hold shares directly in their ownname on the company register. The issuer, or its transfer agent, then keeps the records of ownership for the shareholder and provides services such as transferring shares, paying dividends, coordinating shareholder communications and more, as described below. Beneficial shareholders have their stock held in the name of an intermediary such as a broker. The broker then is able to facilitate trading shares and other services for the shareholders. When shares are kept in this manner, it is often referred to as keeping the shares in “street name.” The vast majority of shareholders are beneficial shareholders.
What was the Dodd-Frank Act? What was its purpose?
The Dodd-Frank Act was enacted with the stated objective of preventing another financial meltdown and restoring public confidence in the US financial markets by imposing new regulations and greater governmental oversight on the US financial services industry. However, the Act went beyond bank reform and imposes substantial new requirements on publicly traded companies, particularly in the area of executive compensation. Under Section 951 of the Act, public companies are required to submit nonbinding resolutions to shareholders to approve the compensation of executives, commonly referred to as “say-on-pay” votes.
