Share Registry: 8 Things Newbie Investors Need To Know

Seasoned investors often tell newbies to start small, and buying shares is one of the safest and cheapest ways to get started. Unlike other options, owning a stake in a company doesn’t require your entire life savings. While it might give you the biggest returns, having company shares is a safe way to invest your money.

As a rookie investor, here are some things you need to know about investing in a share and getting registered as a shareholder.    

What Is A Share Registry?

A publicly-traded company is listed on the stock exchange. As a requirement, the entity must hire a share registry such as cakeequity.com and other qualified registries to manage transactions related to shareholding, among other things. The share registry then works on behalf of the company, bridging shareholders with the entity they’ve invested in.

What Does A Share Registry Do? 

As an organization that takes charge of all shareholder activities, a share registry performs the following actions:  

  • Recording and updating share ownership  
  • Providing shareholding statements and reports 
  • Taking care of dividend payments and rights issues.
  • Making share-related transactions on your behalf  
  • Oversees shareholder voting

Is A Broker Same As Share Registry?

A stockbroker is a professional who performs transactions, like buying and selling stocks, for individual and institutional investors. They’re paid specific fees or commissions for every transaction. However, they don’t maintain a shareholders’ book as share registry companies do. 

Additionally, share registry firms can facilitate share transfers and dividend transactions. Hence, you can ask this firm to reinvest your dividends to buy more shares if you wish.       

What Happens When You Invest In A Share?

While it’s possible to buy stocks directly from the company of your choice, it can be a grueling experience. If you’re a newbie share investor, working with a stockbroker for a simplified process is better.

Being a shareholder, also called a stockholder, means you own shares of a company but don’t necessarily have control over its operations. You will have voting rights over matters concerning company operations, though.     

When you invest in a company, the share registry will hand out a holding or dividend statement. This document will show the share registry’s details, often including contact details.    

When Do You Need To Transact With A Share Registry?  

As the manager of share-related matters, including keeping the shareholder’s list updated, you’d need to contact them when you want to do the following:  

  • Getting a dividend 
  • Transferring shares
  • Voting on a resolution
  • Updating your personal information   

Policies on updating personal information vary from one share registry to another. But you must contact the company for any changes, as they often use these details to verify your account before making any changes to your shareholdings.   

How Do You Get In Touch With A Share Registry? 

Share registry companies manage their website. What you can do as a new investor is to visit the website and create an account. With this account, you may provide instructions to the share registry about stock-related activities you wish to make.  

However, share registry service companies have strict regulations before pushing through with any revisions in your shareholdings. Often, they’ll ask for your Security Holder Reference Number. Additionally, share registry representatives will also ask you to confirm your identity to prevent unauthorized shareholding transactions.         

What To Do If You Have Problems With Your Share Registry 

If you run into problems with your share registry, especially in providing the information they’re asking, forward the issue to the customer service. If this doesn’t resolve the problems, you can write to the company you’re a shareholder to ask for advice or intervention. For shares obtained through a stockbroker, contact your broker right away. 

Is A Shareholder Register Same As Share Registry?

 The short answer is no. A shareholder register shows the list of former and active members of a company’s shares. The information contained in the list often includes: 

  • Shareholder’s name and address
  • Date of inclusion as a stockholder
  • Number of shares held
  • Class of shares owned
  • Date of the share issue 
  • Share certificate number 
  • Share payment status  
  • End date of shareholding, as applicable

Companies are required to update the list regularly to reflect changes in the status of shareholdings. The register is also used to show share transfers, paid and unpaid shares, among other things. Share registry companies are often called in to do the job to ensure the company has the most recent shareholder register.

The Bottom Line 

Investing in shares or stocks is one of the safest ways to make money as a newbie investor. As a company stockholder, you’ll be acknowledged as an investor. Your name and details will be included in the shareholder register—which a share registry company manages.

Once a shareholder, you can transact with the share registry firm to change your details or perform specific transactions, as discussed in this article.

 

 

Rylie Holt