Financial Services,

How Colonial Stock Takes Challenge Out of Stock Transfer

How External Help Takes Challenge Out of Stock Transfer Service

In many cases, stock transfer services address the needs of people on both sides of a trade. Transfer agencies that provide excellent client services ensure the continuity between a company, its shares, and its shareholders. While some companies work with their shareholders internally, many see the advantages of hiring a third party. An agency that takes on your stock transfers can take over the challenges you might see with ever-changing regulations, record keeping, the distribution of dividends and the payout of shares, shareholder support and consultations, and several corporate actions.


One of the most compelling reasons to delegate anything to an outside agency is to task an expert with making sure you adhere to regulations. Rules are never stagnant regarding the stock exchange and shares. Enlisting the help of an agency tasked with staying on top of regulatory changes can be paramount in allowing your company to focus more energy on other pressing business issues.


Recordkeeping is crucial for you and your shareholders. Maintaining up-to-date records can be challenging for even a small business. Third-party agencies can keep your physical records both current and safe. Alternatively, paperless records provide numerous benefits. These computer entries can prevent concerns over the loss of physical proof of transactions such as certificates. Computer-generated records also negate the need for a courier charge although there may still be a delivery fee. Certificates can take on an electronic form with a stock transfer agent as a DWAC (Deposit/withdrawal at custodian) or DRS (Direct Registry System). Even if you do lose a stock certificate, you can assign your agency to track it. Other recordkeeping activities include withholding reports and appropriate filings and tax forms. Shareholder reports include contact information, stock classes, and certificate history.

Dividends and Payouts

With a little digging, you can readily find stock transfer services that provide much more than share payouts or gift transfers.

  • Allow sale of restricted stocks – Remove restriction legends
  • Public sales of formerly private companies for expansion or other purposes
  • Debt conversions – Often bonds for stocks
  • Stock options and stock warrants – Buy stock predicting it will move up or down or buy a stock at a specified price, respectively

Corporate Actions

Beyond transferring stock, your finance agent can perform various corporate maneuvers.

  • Stock split – As it sounds, a company divides its shares, thus multiplying them
  • Mergers and acquisitions
  • Public share offerings
  • Divestitures – Selling subsidiaries
  • Name changes


If you need a stock transfer agency, contact Colonial Stock Transfer Company, Inc. at



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