SIE Exam Question 233: Answer and Explanation

Question: 233

Every publicly-traded corporation is required to have a transfer agent and a registrar. The primary distinction between the two is:

• A. The registrar keeps the record of all stock and bondholders
• B. The transfer agent ensures that dividend payments go out to all registered owners of record on the payable date.
• C. The transfer agent transmits the payment for securities from the purchaser to the seller in all secondary market trades.
• D. They are not different --- they perform the same function

Correct Answer: B

Explanation:

B: This is one of the functions of a Transfer Agent. Registrars make sure that a company does not issue more shares than authorized in the Charter.