In: Accounting
A registrar/transfer agent system relating to capital stock is most likely used by:
Multiple Choice
All companies must use this type of system.
A large, publicly traded company.
No companies use this system anymore.
A small, nonpublic company.
Answer is option B: A large publicly traded company.
Reagistars or Trnsfer agent system including financial institutions and trust created for the purpose of helping the publicly trading companies by way of keeping investor records and transactions had happened in the past. They keep the details of stock transactions including buying, selling, emails, personal details of investors etc...They are the institution's having strong professional skills for the same. This will save the time and cost of big corporations. This will benefit them by getting the personal details of their individual and institutional investors and entities that own their stock. Usually RTA or Registrar/ Trust Agents are banks, trust companies. They will also help the mutual fund companies by sharing the transaction details of investors.
Apart from that these Trust Agents helps in many other functions also. Hence the publicly traded companies having stock and bond capital will be using Registrars or Trust Agents.