1.2.5.1 The Transfer Agent
Companies typically keep track of their securities issues by hiring a transfer agent, which is usually a bank or trust company. The transfer agent records who owns shares and in what form, recording changes of ownership (transfers) as they occur. Since the transaction will not be recorded without the transfer agent’s stamp of approval, each aspect of delivery must be approved by the agent. The transfer agent cancels stock and bond certificates surrendered by the seller and issues new ones in the name of the buyer. It also may pay dividends and mail proxy materials on behalf of