Millions of shareholders use a transfer agent without really knowing what they do or who they are. These agents are part of financial services companies that manage and track registered shareholders that issue stocks. These agents handle all the reporting, recordkeeping, and communication needs for many corporations and the shareholders in those companies around the world.
Regulations/Rules
Your agent fully understands the complexities for SEC rulings and even your particular state’s regulations for tracking and trading securities. They can help private and publicly owned companies deal with the rulings and stay updated on changes with the regulations. They can also implement the right actions for their clients. Agents ensure that they’ve aligned themselves with industry experts to help consistently plan for any new regulations and work with clients if the regulations aren’t clear.
Differences Between Beneficial and Registered Shareholders
Beneficial shareholders own the economic benefits and value of their shares, but the shares are registered under a street name and not the holder’s name. They are typically held by a broker or dealer. Most investors fall into this category, and by default, they are considered NOBO (non-object beneficial owners) because their share position, names, and addresses are shared with investment companies with which they work. These shareholders can opt out to keep information about themselves withheld.
Registered shareholders are entities and individuals who get issued or purchased stock from the company directly. They’re listed by their name on the record with the company register, which is usually managed by the transfer agent of the company. The agent keeps all contact information on these shareholders and handles everything about the shares.
What They Do
Primarily, agents maintain records for the clients, which lists all shareholders and registered shares. They also record any dividends that were paid and work hard to keep the information updated and current. For more information visit EquityTrack.
