What is the main responsibility of a transfer agent?

The primary responsibility of a transfer agent centers around maintaining accurate records of ownership for a company's securities. This role includes issuing and canceling stock certificates to reflect changes in ownership and ensuring that shareholder information is meticulously documented. By maintaining these records, transfer agents facilitate the transfer of securities between buyers and sellers, contributing to the smooth operation of the market.

Additionally, transfer agents help in managing the process of dividend payments and other shareholder communications, serving as a vital link between the issuing company and its shareholders. This function is essential for keeping the integrity of the ownership records intact, ensuring that any transactions in securities are efficiently processed and accurately recorded.