Primarily, it does not matter which stock exchange your transfer agent focuses on because they can help you regardless of their preferred exchange. However, it can be helpful to hire a NASDAQ transfer agent if you’re listed on that particular exchange or you would like to be listed there in the future. It’s helpful to know what these agents do to ensure that you have a better understanding of why you need one.
Maintain Your Records
Primarily, a transfer agent manages and maintains your records for you. This includes the official listing of your registered shareholders and shares. Inside, it consists of the contact information and names of your shareholders, as well as dividend records and other essential information. The agent has to keep this information current for you. Along with such, they make sure that the distributions and dividends go to the right person at the right time. They are also responsible for updating the records with new contact info as it becomes available or gets changed.
If you are currently a private company, you are not on any stock exchanges. However, going public allows you to list with the stock exchanges of your preference. Many companies choose NASDAQ because there are many companies on the exchange, and you’re more likely to get people to buy your shares. However, going public means that you need to deal with the Initial Public Offering (IPO). Most companies are already preoccupied with other issues about to the IPO, so it’s likely best to hire a professional to help. Plus, these agents can be with the company for many years to come, almost becoming part of the company.
With that said, it is essential that you make sure the IPO is a smooth transition. After the IPO, the agent’s job truly starts because they must handle payments, reporting, and many other things, as well. For more information visit EquityTrack.
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