SIE practice questionmediumTransfer Agent
Which market participant is responsible for maintaining records of security ownership and issuing and canceling certificates?
- ACustodian
- BClearing firm
- CTransfer agent✓ Correct answer
- DPrime broker
Explanation
Why C — Transfer agent
A transfer agent maintains records of who owns a company's securities, issues and cancels certificates to reflect ownership changes, and distributes dividends on behalf of the issuer. A custodian holds securities for safekeeping, a clearing firm handles trade settlement, and a prime broker provides services to hedge funds. Transfer agents are registered with the SEC.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Capital Markets & Offerings questions
- In which market do issuers sell newly created securities to investors for the first time?
- What is the key distinction between a broker-dealer and an investment adviser?
- When an investor buys shares of Apple stock on the New York Stock Exchange (NYSE), this transaction takes place in the:
- FINRA is best described as which type of organization?