A stock transfer agent
or share registry
is a company, usually a third party unrelated to stock transactions, which cancels the name and certificate of the shareholder
who sold the share
, and substitutes the new owner's name on the official master shareholder listing. Stock transfer agent
is the term used in the United States and Canada. Share registry
is used in the United Kingdom, Australia and New Zealand. Transfer secretary
is used in South Africa.
A public company usually only designates one company to transfer its 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. 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.
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 shareholder
who maintain their ownership through a brokerage. Street name holders are the opposite of registered holders.
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... Read More