Before you can consider stock transfer services, you need to find a transfer agent and learn about what they do. If your company issues stock, you must track all the transactions and keep updated records about shareholders. It’s challenging to keep records, maintain compliance, and make sure that things are accurate and efficient. Therefore, you’re likely to hire a transfer agent who offers this and other services.
Selling shares of your business can help you get the money you need to run your business. A transfer agent can help you focus on your business while taking care of the records and reducing investor support issues.
A transfer agent’s primary goal is to manage stock ownership changes. For example, you may want to do a stock split, but that requires you to issue new shares. The agency you hire has all the data on ownership necessary to help you with your stock split and many other corporate actions. They can also issue stock certificates or cancel them. They have a complete record of how stocks are held and who owns what.
However, transfer agents don’t just cancel and issue stocks. They can also handle lost stock certificates, shareholder meeting administration, stock transfers, and intermediary duties, which can include share distributions and dividend payments.
Many times, services also include cap table management, which can help you maintain your regulatory compliance. This is highly frustrating and time consuming without help from a professional. To help with cap table management, your agent uses appropriate software and keeps the cap table updated and organized.
Along with such, they can help you raise capital. They might also have their software options that you can sign up for and use for a small fee. Sometimes, it is called Software as a Service (SaaS), which means you get access to the software while utilizing their services. For more information visit EquityTrack.
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