A stock transfer agent is commonly used when companies issue stocks to their shareholders and employees. As the owner, you must track all those transactions and keep accurate records. It’s tough to do it all yourself, and it can be even harder to find an in-house professional who can help. Many times, it’s best to outsource these needs to an agent or firm who can help you keep track of all the records, maintain compliance, and make sure everything is done efficiently.
Many times, companies sell shares of their business to receive the necessary funds to run their business. Stock transfer services can help you manage those records easily and allows you to focus more on your company. You also run into fewer issues, such as regulatory or investor support problems.
When you choose these services for your business, you may find it easier to manage stock ownership changes. For example, you may find it best to do a stock split but to do so, you may need to issue new shares. It’s a complicated process with a lot of regulations, so it’s best to let a professional handle it. Plus, your agency already has the data necessary to help with stock splits, cancellations, and other corporate needs. They also have records of how stocks are held and who owns what.
While many people use transfer agents for issuing and canceling stocks, they can do much more. For example, they can handle dividend payments, share distributions, replacing lost certificates, transfers of stock, and much more. They can also help you manage shareholder meetings.
How to Choose
It’s essential that the stock transfer agency you choose is SEC-registered and has many years of experience. They should also work with a variety of stock markets, as well as private and public companies. Visit Colonial Stock Transfer Company, Inc for more information.