Any corporation that has investors has to have a separate entity that keeps its records in a confidential manner. These entities are known as transfer agents and they must abide by a long list of rules governing their behavior. There are actually quite a few reasons why these types of financial institutions are so helpful.
Liaison
When investors put their money into a certain company or corporation, they need to be able to retrieve certain information regarding their investments when it is convenient for them. While this can certainly be done by the company itself, it is considered to be more financially trustworthy to leave these responsibilities in the hands of agents. They act as a go-between for the company and the investor.
Close Monitoring
One of the key tasks that an agent is responsible for is the close monitoring of an investor’s balances in regards to their account. They maintain certificates of their securities in an electronic form. These electronic certificates are what prove the investor actually owns the securities in question.
Timely Dividends
One thing that has plagued investors in the past has been the untimely payout of stock dividends. When an agent is used, they are responsible for making sure that the company they work with pays shareholders in a timely manner. This is a great way for a corporation to earn the trust of investors.
If you are interested in using the services of a transfer agent, please contact Colonial Stock Transfer Company at https://www.colonialstock.com/.
