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In which capacity would a bank be expected to ensure that stock certificates are not out of balance?

a. Stock registrar
b. Trustee
c. Escrow agent
d. Lead underwriter

1 Answer

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Final answer:

A bank acting as a stock registrar is responsible for ensuring stock certificates are accurately issued and recorded, preventing any imbalance.

Step-by-step explanation:

In the context of stock issuance and management, a bank in the capacity of a stock registrar is expected to ensure that stock certificates are not out of balance. The stock registrar is responsible for maintaining accurate records of the stock issued by a company, ensuring that the total number of shares corresponds to the amount authorized and not exceeded, and avoiding issues like over-issuance or duplication of stock certificates. Other roles such as trustee, escrow agent, or lead underwriter are significant in other areas of financial services but do not primarily deal with the record-keeping of stock certificates.

In the context of stock certificates, the bank would be expected to ensure that stock certificates are not out of balance in the capacity of a Stock Registrar. A stock registrar is responsible for maintaining accurate records of the ownership and distribution of stock certificates issued by a company. They ensure that the total number of outstanding shares matches the number of shares recorded in their records.

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