What Is A Transfer Agent?
In its most limited sense, a transfer agent is an agnostic third-party entity required to process a transfer of a company’s securities from one investor to another. Some companies are required to use a transfer agent due to the nature of their registration with the Securities and Exchange Commission. Other companies are not required to use a transfer agent but choose to because of the arms-length nature of the transfer agent service and because other back office services may be offered by the transfer agent. Still others, which are not required to use a transfer agent, process transfers themselves.
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