Question

The primary responsibility of a bank acting as registrar of capital stock is to:

Oversee and manage dividend payments to shareholders.
Ensure compliance with stock issuance regulations.
Maintain records of stock ownership and changes in ownership.
Supervise shareholder meetings and voting procedures.

Answer 1

A bank acting as a registrar of capital stock is primarily responsible for maintaining accurate records of stock ownership and any changes in ownership, ensuring adherence to stock issuance regulations.

Step-by-step explanation:

The primary responsibility of a bank acting as registrar of capital stock is to maintain records of stock ownership and changes in ownership. This role is essential for a small and growing firm that issues stock to increase its visibility in the financial markets and access financial capital for expansion. The firm must comply with reporting requirements to shareholders and government agencies, like the federal Securities and Exchange Commission (SEC). By managing these records, the registrar ensures that all transactions are accurately reflected and that the company adheres to necessary regulations concerning stock issuance.