A transfer agent keeps a record of the name of each registered stockholder, his or her address and the number of shares owned, and ensures that the certificates presented for transfer are properly cancelled and that new certificates issued in the name of the new owner. Usually one entity provides these services as well as the services of a registrar. See registrar and transfer agent.

For more information on the role of a transfer agent, see Practice Notes, Securities Transfers and Proxy Voting and Changing Transfer Agents: Company Action Items.