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BUY STOCK DIRECT
SOFTWARE INDEX
OTHER PRODUCTS
INFO LINKS
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GIVE KIDS THE
GIFT OF LEARNING!
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"Always sell what shows you a loss and keep what shows you a profit."
Reminiscences of a Stock Operator
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A transfer agent and registrar for a publicly held company keeps a record of every outstanding stock certificate and the name of the person to whom it is registered. When stock changes hands, the transfer agent transfers the ownership of the stock from the seller's name to the buyer's name. The transfer agent also uses the shareholder records to pay dividends and issue proxies.
DRP Programs are Administered by Transfer Agents or the Issuing Company:
Most companies use a transfer agent to administer their DRP program. Some companies, notably Utility companies, administer their own programs. In either case, their is a cost associated with administering a DRP program. The company can choose to absorb that cost or pass it on to those who enroll in the program. Unfortunately, many companies are choosing not to absorb the cost. It is not uncommon to charge $5 for Optional Cash Payments (OCP). If you are regularly investing $50 through OCP's, you are paying a 10% fee and that is simply unreasonable! Not exactly in the spirit of the earlier DRP programs.
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