Duties of a Stock Transfer Agent
Stock transfer agents have many duties when it comes to helping stockholders grow their wealth and perform various transactions. Those who invest in stocks can use the services of a stock transfer agent when they’re looking to make changes over time. Here are a few duties of a stock transfer agent and how they can assist you.
Buy Stocks and Bonds
A stock transfer agent is capable of issuing and canceling stock certificates, while also conducting the processing of a variety of actions that may be related to stocks. They also disburse dividends for shareholder meetings. Their role is to be responsible for protecting shares and bonds to assist the owners and avoid loss. Many public companies hire transfer agents for managing individuals and entities. The professionals work independently from large banks and other types of trust companies.
Verify Medallion Signature Guarantees
One of the primary roles of a stock transfer agent is to verify medallion signature guarantees to ensure it’s legitimate to protect the individual who has issued the security. Hiring a transfer agent can reduce the risk of purchasing a fake stock and losing money during the transaction due to fraud that can occur. Medallion guarantees are often obtained from credit unions, banks and prime brokerage firms. It’s necessary to research the credibility and reputation of the professional to ensure you use the services of someone you can trust.
Conduct Annual Meetings
Transfer agents have the responsibility of holding annual meetings to conduct proxy voting. They also schedule and run meetings for shareholders each year and maintain the role as a special record keeper for corporate shareholder records.
If you’re in need of the services of a transfer agent to assist you with your stocks, visit the Colonial Stock Transfer Company, Inc. website to learn more about our services.