Settlement
In a stock split, who maintains the record of shareholders eligible for additional shares?
Transfer agent = official shareholder records. They handle splits, dividends, and ownership changes.
Complete Analysis & Legal Rationale
The transfer agent maintains the official list of a company's shareholders and their holdings. When a stock split occurs, the transfer agent identifies eligible shareholders and arranges for distribution of additional shares. The issuer declares the split, DTC settles trades, and custodians hold securities.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.