Stock transfer agent


Stock transfer agent

A Stock transfer agent is a company, usually a third party unrelated to stock transactions, who cancels the name and certificate of the former stockholder who 'sold' the stock, and substitutes the 'new' owners name on the Official Master Shareholder listing. The shares are issued in "Street name" which is the term given to securities held in the name of a brokerage on behalf of a customer, usually done to facilitate subsequent transactions. Street name refers to beneficial shareholders who maintain their ownership through a brokerage. Street name holders are the opposite of registered holders.

Verification

Stock transfer agents verify genuinity of owners of stock through signature guarantees. A signature guarantee is a warranty by the signature guarantor that the endorser of a stock certificate or stock power form is an appropriate person to endorse and thus transfer the security. Signatures on a stock certificate or stock power must have the Medallion Guarantee.

A Medallion Guarantee is also used to validate the genuineness of a document. It is backed by a bond and protects the issuer of the security and their transfer agent from fraudulently transferred securities. A Medallion Guarantee may be obtained from most major banks, brokerage firms or credit unions.

Licensing

A Federal license is required from the US Securities and Exchange Commission to operate legally in the US. A Public Company usually only designates one company to transfer it's stock. Independent Stock Transfer Agents are independent of large Banks, but are fully capable of servicing even the largest companies, often at far less cost.

Other activities

Stock Transfer Agents also run Annual Meetings as Inspector of Elections, Proxy Voting, and special meetings of shareholders. They are considered the Official Keeper of the Corporate Shareholder Records.

External links

* [http://mysite.verizon.net/ktk.lange/NewYorkStockTransferTax/ State of New York Stock Transfer Tax stamps]


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Look at other dictionaries:

  • stock transfer agent — See transfer agent …   Ballentine's law dictionary

  • transfer agent — see agent Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. transfer agent n. A …   Law dictionary

  • transfer agent — n. a bank or trust company charged with keeping a record of the shareholders of a corporation and issuing and canceling stock certificates as shares are bought and sold …   English World dictionary

  • Transfer agent — Companies that have publicly traded securities typically use transfer agents to keep track of the individuals and entities that own their stocks and bonds. Most transfer agents are banks or trust companies, but sometimes a company acts as its own …   Wikipedia

  • transfer agent — noun an agency (usually a bank) that is appointed by a corporation to keep records of its stock and bond owners and to resolve problems about certificates • Hypernyms: ↑agency * * * noun : the officer, bank, or trust company that keeps the… …   Useful english dictionary

  • transfer agent — A person having the duty of registering a transfer of corporate stock. 18 Am J2d Corp § 408. Not a managing agent within the meaning of a statute concerning the service of process upon a foreign corporation. Anne: 113 ALR 79 …   Ballentine's law dictionary

  • transfer agent —    A person or company used by a corporation to process the transfer and registration of stock certificates …   Business law dictionary

  • transfer agent — a person, bank, or trust company officially designated to act for a corporation in executing and recording the transfers of its stock from one legal owner to another. * * * …   Universalium

  • registration of stock transfer — The entry of a transfer of shares of corporate stock upon the books of the corporation or of its registrar or transfer agent. 18 Am J2d Corp § 408 …   Ballentine's law dictionary

  • stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… …   Black's law dictionary


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