Stock Transfer Agent

A stock transfer agent is a financial institution or trust company responsible for managing the transfer of a company’s shares between buyers and sellers, maintaining records of shareholders, and handling other administrative tasks such as dividend payments, stock splits, and lost or stolen certificates. Transfer agents ensure that changes in share ownership are accurately recorded and that shareholders receive important communications from the company.

Example

When an investor buys shares of a company, the stock transfer agent ensures the transfer of ownership from the seller to the buyer is properly recorded in the company’s books.