Publisher's Synopsis
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1921 edition. Excerpt: ... arrangement is a yearly contract by which for a fixed aggregate sum the transfer agent agrees to do the transfer work irrespective of the number of certificates presented, but with special fees for making a transfer and getting out the new certificate the same day and for each additional certificate issued in the same name, that is, when a holder of, say, a ioo-share certificate asks for two 50-share or ten 10-share certificates in exchange. The corporation bears the expense of engraving and providing new certificates. The total earnings are much increased where the unit of trading on the stock exchange is small, say, 10-share lots as compared with ioo-share lots. When certificates are sent to London they are first broken into 10-share certificates, for the unit of trading in London is 10 shares. The sum charged, other than the extra fees just mentioned, for the year's services varies with the volume of the work, which in turn depends upon the following factors: the number and kinds of services undertaken, the number of shares and of stockholders, the activity of the shares, the frequency of dividends and whether the bank sends out the dividend checks, whether the corporation is a customer of the bank, etc. But whatever the amount agreed upon, it covers all services, postage, envelopes, etc. The transfer agent assumes greater responsibilities than does the registrar and his compensation is accordingly larger. The Nature of a Paying or Fiscal Agency The large metropolitan banks and trust companies act as paying or fiscal agents for corporations, municipalities, etc. A paying agent is most useful if located in New York City, the money center of the country; but convenience is also served by having fiscal agents in several cities. The state...
