transfer agent is an independent entity, which handles name changes and records the names of security holders of record and ensures that all certificates are properly endorsed.
When investors buy and sell securities the transfer agent is the firm that is removes the name of the selling shareholder from the records of corporate ownership and adds the name of the buying shareholder to the records of corporate ownership. If the security in question is an open end mutual fund the transfer agent simply cancels the shares of the selling shareholder and would issue new shares to any investor who buys the mutual fund shares.
2023 © Securities Institute, All Rights Reserved.
Privacy Policy | Terms of Service.
