Glossary

Transhare is a full service stock agency and registrar specializing in serving publicly traded micro-cap, small-cap and mid-cap companies. We help both publicly and privately held companies wishing to enter the public arena.

  • Affidavit of Loss/Affidavit of Non-Receipt

    A written statement that attests to the fact that a shareholder is not in possession of his/her certificate due to loss or non-receipt. The affidavit must be notarized. There is usually a replacement charge of 2% of the market value of the securities in cases of loss.

  • Affiliate of the issuer

    A person that directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with an issuer.

    This includes any relative or spouse of such person or any relative of such spouse residing with such person.

    It also includes any trust or estate any of the persons specified above collectively own ten (10) percent or more of the total beneficial interest or serve as trustee, executor or in a similar capacity.

    It further includes any corporation or other organization, excluding the issuer, in which any of the persons described above are the beneficial owners collectively of ten (10) percent or more of any class of equity securities or ten (10) percent or more of the equity interest.

  • Book Entry Shares

    Shares held in non-certificate form in a dividend reinvestment plan, direct stock purchase plan, employee plan, direct registration or held by a broker (“street name”). In lieu of a certificate, the investor receives a statement and usually has the right to request a stock certificate.

  • Cash Dividends

    Cash payment to a corporation’s shareholders. Cash dividends are paid, usually quarterly, to shareholders on the books as of the record date. Dividends on shares registered on the books of the corporation are paid directly to shareholders while dividends on shares held through a broker are paid to the broker and passed on by the broker to their clients.

  • Certificate Registration

    A “registration” is the way the securities industry refers to the names or entities securities are registered in. It also designates how the shares are held such as joint tenancy, tenants in common, etc. and indicate various ownership values.

  • Certification

    Equity ownership in a corporation in the form of a physical certificate or book entry.

  • Common Stock

    Equity ownership in a corporation in the form of Common Stock. May be in the form a physical certificate or book entry. Book entry shares are usually held at a broker or registered on the books of the corporation as directly registered or in the form of plan shares.

  • Cusip Number

    Committee on Uniform Securities Identification Procedures. It is used to identify the issuer and type of security issued. It is located on the stock certificate and on other forms.

  • Direct Stock Purchase Plan

    Direct Stock Purchase Plans allow investors to purchase their first share and every share directly through the issuer or the issuer’s Transfer Agent. Shares are held in book entry form with a certificate issued upon request. Plans usually allow for the reinvestment of dividends and optional cash investments.

  • Direct Registration

    A method whereby shareholders are registered on the books of the corporation in book entry. In lieu of receiving a physical certificate, the shareholder receives an advice evidencing ownership. The shareholder also receives periodic statements. Directly registered shares can be requested by an investor when purchasing shares through a broker (rather than requesting the issuance of a physical stock certificate). For an investor to make such a request, the issuer must have previously elected to allow its shareholders to own shares in a Direct Registration mode. Direct Registration shares also can be issued in connection with spin-offs, stock splits and other corporate actions.

  • Dividends

    Cash dividends declared on Common Stock are paid by corporations, usually quarterly, to shareowners of record on the declared record date. Shares directly registered on the books of the corporation are paid directly to shareholders while share held through a broker are paid to the broker by the corporation.

  • Escheatment

    Abandoned property that is turned over to the state of last known residence. Different rules and regulations apply to the various states.

  • Ex-dividend

    Normally two business days prior to record date. A shareholder purchasing stock selling ex-dividend is not entitled to receive the dividend declared but not yet paid.

  • Issuer

    Issuers are legal entities able to issue and distribute securities, paying dividends if declared and reporting to shareholders. Issuers are corporations, municipalities, governments and investment trusts.

  • Legal Transfer

    Transfer of securities which requires special documents due to settlement of estates for deceased shareholders, trust accounts or corporate holdings.

  • Medallion Signature Guarantee

    A stamp and signature given by a financial institution such as a commercial bank, credit union, brokerage firm, etc. that is a member of the Securities Transfer Association Medallion Program (STAMP), New York Stock Exchange, Inc. Medallion Program (MSP) or Stock Exchanges Medallion Program (SEMP). The Medallion is not a notarization.

  • Open Penalty Surety Bond

    A insurance bond meant to protect a transfer agent and shareholder against loss in connection with a lost, missing or stolen stock certificate being presented in the future after a “stop order” has been placed.

  • Payable Date

    The date shareholders of record receive the benefits of a corporate action.

  • Record Date

    The date used to determine the shareholders of record in connection with a corporate action.

  • Registered Shareholder

    Securities held on the books of a corporation in the name(s) of the shareholders(s) (as opposed to held at a brokerage in street name). Registered shareholders receive all corporate communications directly from the company.

  • Stock Power

    Form used to instruct the transfer of ownership of a security from the registered owner to another party. All shareholder(s) must sign and have a Medallion Signature Guarantee affixed.

  • Stock Split

    An increase or decrease in the number of outstanding shares of a stock without any change in shareholder equity or the aggregate market value as a result.

  • Stop transfer

    An order placed on a security reported lost, missing or stolen that prevents its transfer until such time as the security is either replaced or located.