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LSDefine
Simple English definitions for legal terms
Transfer agent
Read a random definition: transferred-intent doctrine
A quick definition of Transfer agent:
A transfer agent is like a special helper that a company hires to keep track of who owns their stock. They keep a list of all the people who own the stock and update it when someone buys or sells it.
A more thorough explanation:
A transfer agent is a person or a company that keeps track of the legal records of all the people who own stocks in a corporation. They are usually appointed by the corporation and are responsible for updating the records whenever there is a change in ownership of the stocks.
For example, if you own stocks in a company and you decide to sell them to someone else, the transfer agent will update the records to show that the new person is now the owner of those stocks. They will also keep track of any new stocks that are issued or any stocks that are cancelled.
Another example would be if a company decides to issue a dividend to its stockholders. The transfer agent would be responsible for making sure that the dividend is paid to the correct people based on the records they keep.
Overall, the transfer agent plays an important role in making sure that the ownership of stocks in a corporation is properly recorded and maintained.