General Securities Sales Supervisor (Series10) Practice Exam

In the event of stolen securities, who else should be notified apart from the Securities Information Center?

1. The federal authorities

2. The firm's compliance department

3. The transfer agent

4. All of the above

The correct answer is: The transfer agent

In the case of stolen securities, notifying the transfer agent is essential because the transfer agent is responsible for maintaining records of ownership and facilitating the transfer of securities. If securities are reported as stolen, the transfer agent can help prevent unauthorized transfers and ensure that the rightful owner is protected. They can also assist in canceling the original certificates and potentially issuing replacement securities if applicable. While notifying federal authorities and the firm's compliance department is also important in addressing the implications of the theft and ensuring compliance with regulatory requirements, the most direct action to take regarding the stolen securities themselves involves the transfer agent. This role is crucial in handling the technical aspects of ownership and the transfer process in such situations.