SIE (Securities Industry Essentials) Practice Exam

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In the event of a stock split, which of the following parties is required to maintain a record of the shareholders eligible to receive the additional shares?

Stock exchange
SEC
Transfer agent
Brokerage firm

The correct answer is: Transfer agent

In the event of a stock split, the transfer agent is responsible for maintaining a record of the shareholders eligible to receive the additional shares. A stock exchange is responsible for facilitating the buying and selling of stocks, while the SEC oversees securities laws and regulations. A brokerage firm acts as an intermediary between investors and the stock market, executing trades and providing investment advice. None of these parties have the specific responsibility of maintaining a record of shareholders eligible for additional shares in a stock split.