SIE Exam Question 142: Answer and Explanation

Question: 142

Which of the following duties does a transfer agent NOT perform?

• A. Maintains the list of stockholders
• B. Verifies owner identity in stock issuance
• C. Verifies the validity and legality of a company’s debt in a bond issuance
• D. Handles new issuance of stock certificates

Correct Answer: C

Explanation:

A transfer agent does not verify company debt; this is the role of the registrar. A transfer agent does maintain the list of stockholders, verifies the correct issuance of shares, and handles the new issuance of stock certificates.