Frequently Asked Questions


 

What/Who is STC?:

What is a transfer agent?

A transfer agent’s primary function involves maintaining accurate shareholder records for clients, with a focus on the issuance, cancellation, and transfer of shares between the company, its shareholders, and the brokerage community.  To learn more about what a transfer agent does, click here.


Does my company need a transfer agent?

Regardless of whether you are a private company or a publicly traded company, a partnership with a transfer agent can be beneficial. Leveraging a trusted source to oversee your cap table management, handle shareholder communication and access, and administer all of your back office needs enables you to focus on growing your Company without the additional costs and regulatory burdens that accompany these functions when they are kept in-house.


How do I choose a transfer agent?

Partnering with a transfer agent is an important decision. Finding an agent that strikes the right balance between experience, cost and customer service is often difficult. Consider asking how long the agent has been in business, and what experience they have with service offerings that are applicable to your Company. You should also consider what the shareholder experience will be like with the potential agent. When a shareholder calls will they reach a call-center or the direct account representative? Will they be charged per phone call? And what are the expected response times to inquiries?


How do I change transfer agents?

Changing your transfer agent involves making the appropriate regulatory filings (as necessary) and satisfying any existing contractual obligations you have with your current agent. Typically, this process can take between 10 and 30 days. Please contact us to learn how we can help you make a seamless transition.


How can I pay my bill?

STC accepts payment via credit card, wire, ACH or check. Please contact our Accounting Team (accounting@stctransfer.com) with any questions.

 

DTC

What is DTC?

The Depository Trust Company (DTC) is one of the world’s largest securities depositories. DTC acts as a limited purpose trust company and provides safekeeping through electronic and physical certificated record-keeping of securities balances. They also act as a clearinghouse to settle trades.


How do I become DTC Eligible?

Please see our DTC Eligibility Page.


What are the different levels of DTC Eligibility?

There are 4 levels of eligibility with DTC:

  • Level 1 – CUSTODY Only. Only physical certificates can be deposited with DTC. While the shares will clear through DTC, the shares will be registered in the broker’s name.
  • Level 2 – DTC Eligible. Only physical certificates can be deposited with DTC. DTC has the ability to serve as the custodian and hold shares through its nominee name, “CEDE & Co.”
  • Level 3 – FAST Eligible. This level of eligibility provides the ability to deposit and withdraw shares electronically to a brokerage account through the FAST (Fast Automated Securities Transfer)/DWAC (Deposit Withdrawal at Custodian) system.
  • Level 4 – DRS Eligible. DRS eligibility provides an alternative to shareholders seeking to hold their securities in “street” form and enables investors to elect to hold their assets in book entry form directly with the issuer. This level of eligibility is part of the listing requirements for senior exchanges.

 

Transfer

How do I change the registration name on my stock certificate?

Changing the registration on your security involves a transfer of ownership. To effectively change the registration, there are several pieces of information that must be provided to the transfer agent. To learn more about specific requirements for a transfer, click here.


How do I transfer stock when a death has occurred?

If the shares are registered in a Joint Tenancy with rights of survivorship (“JTWROS”), then the death of one of the joint tenants results in the surviving tenant being the sole owner of those shares. If the shares are registered in with a Transfer on Death (“TOD”) Beneficiary, then the beneficiary becomes the owner once the holder passes. In most cases, additional documentation will be necessary to complete the transfer. Click here to review the required documentation.

 

EDGAR

How do I become a publicly traded company?

Before being able to start selling securities in the open public market, companies must first register their securities with the U.S. Securities and Exchange Commission, file annual reports with the SEC, and comply with the Securities Exchange Act disclosure rule. STC can help with filing the required Form 10, Form 1-A, or Form S-1. To learn more about the different forms, please contact us.


What triggers reporting obligations under the exchange act?

Filing a registration statement under Section 12(b) or 12(g) of the Exchange Act is the most common way a Company becomes subject to ongoing disclosure requirements, but companies may also fall under the Exchange Act reporting requirements if it has more than $10 million in total assets and a class of equity securities that is held by either 2,000 or more persons or 500 or more persons who are not accredited investors, or it lists the securities on a U.S. exchange. If you would like to learn more about our EDGAR services, click here.

 

 

Fund Administrator:

What is a fund administrator?

A Fund Administrator supports all recordkeeping aspects throughout the lifespan of your fund from the initial capital raise through its maturity. Some of the services STC offers include:

  • Assisting with audits and financial reporting
  • Management of funds within an escrow account
  • Subscription processing for offerings
  • Online access for investors and financial advisors
  • Shareholder statements reflecting individual investments
  • Fund accounting services
  • Managing periodic distribution payments to investors

For more information on Fund Administration, please click here.


What can I do if my dividend check is lost?

If a dividend check is lost, you may request a replacement check by contacting us. Securities Transfer Corporation will place a stop payment on the original check and issue a replacement. Please allow 10 days from the dividend payment date before requesting a replacement check.

 

Issuer

How do I conduct a corporate action such as a stock split or name change?

Your company will have to first file through FINRA or the relevant securities exchange they are listed on a request to change your name. Once that has been reviewed, FINRA or the exchange will reach out to STC to request certain information which STC will provide. If you have additional questions about the process, reach out to our Issuer Services Department at 469-633-0101 or contact us via email.


How do I determine how many beneficial holders have shares through their broker?

STC can assist you in acquiring a Non-Objecting Beneficial Owner (“NOBO”) List that will be able to get you the list of names and addresses for all Non-Objecting Beneficial Owners. To learn more, contact us.

 

XBRL

How long does XBRL tagging take to complete?

The tagging process depends on how complex your financial statements and notes to financials are. To learn more, visit our EDGAR page or please reach out to our EDGAR Department at 469-633-0101.


When does my company need to start filing using inline XBRL?

The SEC requires your company to file inline XBRL starting June 15, 2019 for large accelerated filers, June 15, 2020 for accelerated filers, and June 15, 2021 for all other filers.


Do all filings require XBRL tagging?

No. Only files that contain financial reporting need to be tagged. This includes a form 10-K, 10-Q, 40-F, and 20-F, with the last two only needed XBRL tagging if they are being used as annual reports.


What information is required to be tagged?

The 4 main financial statements that must be tagged are: The Balance Sheet, the Statement of Operations, the Statement of Cash Flows, and the Stockholder’s Equity. All pertinent financial information within your Notes to Financials will also need to be tagged.