Review of the Action Stock Transfer Agency

Action Stock Transfer Agency: All You Need to Know

When it comes to handling stocks and transfers, you want a company that can handle everything, all in one place. Having everything centralized and under one roof can only be beneficial to you. That’s one of the most important things when choosing a stock transfer company to handle your assets in the market.

But, how do you know what to look for to find the right agency for your business?

One company that offers these services is Action Stock Transfer. We’ve taken an in-depth look at this popular option to share everything you need to know about what exactly these companies do and how does Action Stock Transfer fits in.

All About Transfer Agencies

A stock transfer agency is a third-party company. They work with businesses to keep shareholder securities organized and safe. Once you hire an agency, they will assign a specific agent to closely deal your shares.

These agencies are always needed. It’s true that it is possible for a company to handle their own shares and securities. However, this process can easily become overwhelming or disorganized. It’s especially a lot to handle with all the other day-to-day running of the business. A third-party agency can prevent that confusion since their entire job concerns with the shares.

The main purposes of a stock transfer agency are as follows:

  • To act as a mediator between the business and the shareholders (and the market itself)
  • To issue new certificates or cancel old ones to reflect new ownerships
  • To track and handle lost, destroyed, or stolen certificates.

This can all easily fall to the wayside without a dedicated agent to service them. That’s why a stock transfer agency is crucial to your business.

Action Stock Transfer: Who Are They?

Action Stock Transfer is a dedicated securities transfer agency. Every agency is a little different, and each has their own specialties and expertise. Action Stock Transfer has all of the services a stock transfer agency should have. They can manage certificate issuances and deal with lost or stolen certificates. They also specialize in Electronic Data Gathering, Analysis, and Retrieval (EDGAR) filing. This is a specific type of filing for the SEC’s online public database, EDGAR.

Founded in 1999, the company has two decades of experience in managing their shareholders’ securities. They maintain close relationships with their clients and offer a variety of services. Their client base and specialties appear to be domestic for the most part. As such, they are perfect for small businesses or local/national businesses without international ties.

Along with their basic transfer agency functions and EDGAR filing services, they provide further services. These include annual meeting services, stock splits, and dividend disbursement services.

About Their Services

Action Stock Transfer acts as both a stock transfer agent and an EDGAR filing agent. They provide their services purportedly at no extra cost to their clients. This means no start-up costs, hidden fees, and no cost for certain changes or filings. Some of their specific offerings include:

  • Annual meeting services
  • Stock certificate issuances and removals
  • Lost/stolen certificate assistance
  • Shareholder record keeping
  • EDGAR filing directly to SEC

Here is how they fulfil the three basic duties as a transfer agency. Plus, a little bit about their EDGAR services.

Annual Meeting Services

One component of Action Stock Transfer’s business model is their annual meeting service. Many stock transfer companies offer this. These meetings can be quite difficult to prepare for. After all, you want your shareholders to have all the necessary information presented in a professional, timely manner.

That is what they do – create presentations to set your shareholders’ minds at ease.

Stock Certificate Issuance/Removal

This is one of the basic requirements of a stock transfer agency. They are registered with the SEC and are DTC FAST transfer agents, too. If you are transferring a share using Action Stock Transfer, they require certain information. You need to send the original certificate with the owner’s signature on the front. All this must have a Medallion Signature Guaranteed notary.

There are other caveats to their transfers as well. These help to keep the information of the past and present owners safe. There is also a small fee per certificate issued.

Lost/Stolen Certificate Assistance

Action Stock Transfer has a form referred to as a Lost Stock Affidavit. This is available from the transfer agent assigned to your company. To receive a replacement certificate and to have the previous one considered null and void, they require:

  • The completed form
  • Notary of the form
  • A check for 2% of the value of the stock or $50 (whichever is greater). The check should be payable to “Travelers Insurance Company.”
  • A $25 payment to Action Stock Transfer

Shareholder Record Keeping

Action Stock Transfer claims to use only the most up to date and advanced software to keep records of shareholders. All their software is the latest in the stock transfer programs to stay organized and efficient.

EDGAR Filing

EDGAR form filing is for companies that must apply directly with the SEC. Quite a few companies fall into this category. Action Stock Transfers understand EDGAR filing. They have the software and capabilities to efficiently convert your EDGAR files to HTML. From there, they can submit the files directly to the SEC database.

The Bottom Line

Action Stock Transfers absolutely satisfies the requirements for a good agency. However, where they eliminate annual fees, they add in other costs. Furthermore, they are mainly a domestic company. This can be limiting to some businesses. So what can you do if they’re not your best fit?

Search For the Best Transfer Agency For Your Business

If you’ve decided to work with a transfer agency but don’t know where to start, get in touch! At Easy Stock Loans, we can find great solutions for businesses of any size. Whether you want to know more about Action Stock Transfer or another agency, we can help you get started.

Fill out the online contact form, and we’ll assist you in finding the right agency for your needs. Contact us today!

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. Easy Stock Loans is not affiliated with the named representative, broker – dealer, state – or SEC – registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

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