Stock ledger definition

What is a Stock Ledger?

A stock ledger lists the share-related transactions of a company. It states the name of the owner of each block of shares, as well as the number of shares owned by each investor, the type of shares purchased, the date of each purchase and the amount paid. A stock ledger can be structured as a table, which is updated to reflect all sales, repurchases, or transfers of stock.

How a Stock Ledger is Used

There are several uses for a stock ledger, which are as follows:

  • For auditor reviews. A stock ledger is used by a company’s auditors to validate the ownership of the business. This is part of their normal auditing procedures.

  • For potential investors. A stock ledger is presented to potential investors, who may want to verify company ownership prior to making an investment.

  • For maintaining a share count. A stock ledger is necessary for keeping an accurate record of the total number of shares outstanding. This is essential for shareholder meetings, where voting rights are usually based on share ownership.

Responsibility for the Stock Ledger

The corporate secretary keeps the stock ledger up-to-date by adjusting it for all stock sales and purchases. An alternative to the corporate secretary is for the corporate attorney to have responsibility for the stock ledger.

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