Company A does not employ an independent stock transfer agent,but rather issues its own stock and maintains its stock records.When outstanding shares are transferred from one holder to another,the certificate of the selling shareholder should be:

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When outstanding shares are transferred from one holder to another, the certificate of the selling shareholder should be canceled (generally by perforation) and attached to the certificate book. This helps to maintain accurate records of the company's stock and prevent fraudulent reissuance. The selling shareholder does not need to retain the certificate and it does not need to be sent to the state's registrar of investment securities.

Company a Does Not Employ an Independent Stock Transfer Agent,but