A transfer agent
A) Keeps the stockholder list and, from time to time, determines the shareholders eligible to receive dividends.
B) Handles the exchange of shares, canceling the shares surrendered by sellers and issuing new certificates.
C) Records notes and bonds payable.
D) Makes investment decisions for an entity.

Question

Quizplus · Accepted Answer

A transfer agent is responsible for handling the exchange of shares, canceling the shares surrendered by sellers, and issuing new certificates. They do not make investment decisions or record notes and bonds payable. They do keep the stockholder list and determine shareholders eligible for dividends, but that is not their primary function.

A Transfer Agent