§ 8407 Security Agent Obligations

• •If a company hires someone to handle its stocks or certificates, that person must treat the owners fairly, just like the company would.
• •This rule applies to people who help with transferring stocks, issuing new ones, or canceling old ones.
• •The helper has the same responsibilities to the stock owner as the company itself.

You own stocks in a company, and they hire a bank to handle the paperwork when you sell your stocks.

The bank must treat you fairly and do their job carefully, just like the company would. If they mess up, they can be held responsible.