When companies issue stocks, they must track transactions and keep accurate and up-to-date shareholder records. It can be very difficult to keep these records, maintain regulatory compliance, and ensure everything is done in the most efficient and accurate manner. Thus, many businesses turn to stock transfer services.
When you sell shares in your business, you can receive the needed funds to run a successful company. Stock transfer services exist to help you manage your investor records more easily and give you the opportunity to focus on your business, while eliminating potential regulatory and investor support issues. Read below for an explanation of the services and benefits of those services that Colonial Stock Transfer can provide.
One of the most important reasons to consider using transfer agents is to help manage changes in stock ownership. For instance, it is sometimes a good idea to do a stock split. However, doing so also may require issuing new shares. Your stock transfer agency has all the ownership data they need to assist you with stock splits and other corporate actions, as well as cancel and issue stock certificates. In fact, they have complete records of who owns what and how the stocks are held.
Issuing and canceling stock is not the only thing a transfer agent can do for you. They also handle:
Intermediary duties, such as dividend payments and share distributions (e.g., redistributing stocks due to a company merger/acquisition, spinoffs)