A transfer agent is responsible for maintaining accurate records of shareholder purchases, redemptions, and account balances. They also handle the issuance and cancellation of shares and ensure shareholders receive appropriate distributions.
D is correctbecause maintaining shareholder records is a core duty of a transfer agent.
Ais incorrect because underwriting is the responsibility of a broker-dealer.
Bis incorrect because distributing the prospectus is handled by the fund’s distributor.
Cis incorrect because custody of securities is the role of a custodian, not the transfer agent.
[Reference:SIE Study Guide, Chapter 5: Investment Companies, ]
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