Security has been an operative word since ancient times when people began realizing the value of life and property. Every person or community takes steps to prevent any robber or criminal to seize one’s material possessions, not to mention one’s life or reputation.
Security is of prime importance, especially in the investment industry; and when considering investor management, that security can become even more crucial.
Providing safeguards against unauthorized transfer of securities is of great concern during any investment venture. Significant losses can arise from illegal transfers, not to mention harm done to the good relationship between a firm and its shareholders.
The task of determining the appropriate share management strategy lies in the hands of the companies, which would include, among others, establishing an efficient in-house procedure or working with a reliable transfer agent. However, knowing how the business process begins will help you appreciate the problem and the appropriate solutions needed?
Consider these few vital steps you can take in order to prevent unauthorized transfer of securities:
Learn How the Process Works
Knowing how the fundamental security procedures needed for a business works is the first task of a novice entrepreneur or even a veteran business-owner. Even if you intend to hire the services of a transfer agent, you have to familiarize yourself with the basic business process. You can visit the website of the U.S. Securities and Exchange Commission to avail of a broad range of choices of educational materials for business owners and new entrepreneurs.
Another security procedure to undertake to protect authenticity and prevent fraud is a signature guarantee, also known as a “medallion signature guarantee”. Signature guarantees can safeguard shareholders and their assets by preventing unauthorized transfers and potential losses. Moreover, a guaranteed signature minimizes the responsibility of any transfer agent managing the transaction process.
This security method is used in many transfers since the signature guarantee stamp acts as a warranty given by the transferring financial institution with regards to the authenticity of the signature.
Always Choose a Trusted Agent
Whereas some firms opt to serve as their own transfer agent, most of them would prefer to work with a third-party institution – a bank, trust company, etc. Transfer agents serve a vital and stable function in investor procedures, providing a strong bridge between a company and these financial institutions. For a problem-free process, always work with a dependable, trustworthy agent-partner who considers an open two-way line of communication as a crucial requirement for investment growth.
Fully appreciating the business process, working closely with a reliable agent and establishing safety checks can lead to prevention of unauthorized transfer of securities. If you are uncertain about what to do next in investor management, please get in touch with us, a full-service transfer agent, to get the expert help you need. And to learn more about our personalized solutions for your firm or business, contact us now.
What are corporate actions and how do they affect you?
Find out today! Contact us now!
What you need to know about Albano Transfer Agent - Carefully positioned in the financial world, transfer agents play an important role in safeguarding companies and the people involved with them. Protecting against fraudulent transfers and managing shareholder records are just the beginning. As securities regulators work to stamp out fraud, it is important to understand just how the roles of transfer agents are being monitored and regulated.
Hong Kong Branch
Address: 35F Hong Kong Central Plaza,
Harbour Road, Wanchai HK
Tele: +852 3014 6041
Your access to and use of the Service is conditioned on your acceptance of and compliance with these Terms. These Terms apply to all visitors, users and others who access or use the Service.
By accessing or using the Service you agree to be bound by these Terms. If you disagree with any part of the terms then you may not access the Service.
Links to Other Web Sites
Our Service may contain links to third-party web sites or services that are not owned or controlled by Albano Stock Transfer.
Albano Stock Transfer has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any third party web sites or services. You further acknowledge and agree that Albano Stock Transfer shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any such content, goods or services available on or through any such web sites or services.
We strongly advise you to read the terms and conditions and privacy policies of any third-party web sites or services that you visit.
These Terms shall be governed and construed in accordance with the laws of Hong Kong, without regard to its conflict of law provisions.
Our failure to enforce any right or provision of these Terms will not be considered a waiver of those rights. If any provision of these Terms is held to be invalid or unenforceable by a court, the remaining provisions of these Terms will remain in effect. These Terms constitute the entire agreement between us regarding our Service, and supersede and replace any prior agreements we might have between us regarding the Service.
We reserve the right, at our sole discretion, to modify or replace these Terms at any time. If a revision is material we will try to provide at least 15 days’ notice prior to any new terms taking effect. What constitutes a material change will be determined at our sole discretion.
By continuing to access or use our Service after those revisions become effective, you agree to be bound by the revised terms. If you do not agree to the new terms, please stop using the Service.
Albano Stock Transfer Services - Business decisions are often difficult to make, especially for publicly-traded firms. When a business-owner decides to institute changes, or what we also call corporate actions, the company’s workers, shareholders and, likewise, the securities issued by the firm are affected, one way or another. Corporate actions provide strong signals for investors seeking potential investment opportunities. A firm’s financial health, as seen through such indicators, points to its ability to perform well at the stock market.
Specifically, what would comprise a corporate action? Such actions as changing a company’s name, stock splits, and mergers and acquisitions would serve as common examples of corporate actions. They are done for various reasons, such as corporate restricting or sharing the company’s profits to its stockholders. In general, such actions arise as corporate decisions voted upon by a firm’s board of directors, with the approval of the shareholders. Hence, no one is left out in the decision process, difficult and messy as these changes might often come, especially when the financial interests of many individuals or groups are involved. Nevertheless, corporate actions often arise as a necessary phase in the growth of a company.
Let us take a closer look at some corporate actions and how they impact a company’s stock:
Stock Splits: Here is a case where a firm divides or “splits” its present shares into multiple shares. Referred to as a “bonus share” or “forward stock split”, a stock split is often taken as inconsequential in terms of affecting a company’s equity, since the increase in the number of shares does not alter the worth of the assets of a firm. The primary reason for resorting to this corporate action is essentially to enhance the liquidity of a company’s shares on the stock market.
Reverse Stock Splits: This move is comparable to a conventional “forward” stock split, except that this one ends up decreasing the total number of a firm’s outstanding shares. Again, like its counterpart, this action does not also change the real value of a company’s shares either. Reverse stock splits are also referred to as a “stock consolidation” or a “share rollback.”
Dividends: Dividends refer to the shared earnings of a company, as approved by its board of directors, which is distributed to a group of shareholders. Issuing dividends to shareholders impacts the equity of a company as it reduces its distributable equity. There are two kinds of dividends: stock and cash. Stock dividends come in the form of stock certificates, while cash dividends are given in dollar bills to individual shareholders.
Mergers and Acquisitions: Among corporate actions, mergers and acquisitions can induce drastic changes in a firm’s organization and operation; hence, they can affect its financial status significantly. In a merger, two or more firms join to become a single organization, while acquisitions involve one firm taking control over another firm and its bulk of shares. A direct and clear line of communication among shareholders during such corporate moves is of utmost importance, since radical changes can occur in stock value and price.
The ultimate goal of corporate actions is to provide shareholders higher value for their investments, aside from positioning a company in such a way that its potential for growth is enhanced. Stagnation, as is often the case, results from the absence of purposeful action.