Transfer agents are responsible for maintaining accurate records of securities ownership and facilitating the transfer of securities between buyers and sellers. They record an investor's name, contact information, and details of securities purchased in the company's official registry. They ensure the smooth transfer of securities by verifying the seller's legal ownership and buyer's necessary funds. They work with brokers and other intermediaries to comply with applicable laws and regulations. Additionally, they may provide other services such as dividend distribution and stock buyback programs. Companies may appoint their own transfer agent or outsource this function to a third-party service provider.
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