When independent stock transfer agents are not employed, the canceled stock certificates should be defaced to prevent reissuance and attached to their corresponding stubs.
A transfer agent plays a vital role in acting as a liaison between a company's registrar and an investor. A stock transfer agent makes sure that shareholders receive dividend payments in a timely manner. These agents send stock shares to investors after a stock split.
When a company cancels its common stock, it declares all existing common stock certificates to be null and void. Most often, companies cancel stock while going through bankruptcy proceedings.
Hence, the canceled stock certificates should be defaced in order to prevent reissuance.
To learn more about stock certificates here:
https://brainly.com/question/17035473
#SPJ4
