Stock transfer agent
What is 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.
Where have you heard about a stock transfer agent?
Every time you buy or sell a stock, you’ll deal with that company’s transfer agent. You’ll receive the company’s annual and quarterly reports from the transfer agent, and they’ll replace any lost or stolen certificates. A US term, in the United Kingdom it is known as the ‘share registrar’.
What you need to know about a stock transfer agent.
The stock transfer agent acts as the intermediary between you and the company that you’ve invested in, so it’s important to keep track of any communications that they might send you. If a company announces a stock or cash dividend, it will be the agent that delivers it to you and if there is a stock split the agent will send you certificates for the extra shares that you now own. Depending on the type of stock you hold, you may have voting rights on major company decisions, and it will be the agent that informs you of the details.