Which entity maintains a record of the shareholders that are eligible to receive additional shares after a stock split?

The transfer agent plays a crucial role in maintaining accurate records of shareholders and their respective holdings. After a stock split, it is essential for the transfer agent to update their records to reflect the new number of shares each shareholder owns. This includes identifying who is eligible to receive additional shares as a result of the split.

The transfer agent ensures that all information regarding shareholder ownership is accurate and up-to-date, allowing them to manage the distribution of new shares efficiently. This includes processing changes in ownership and issuing new share certificates if necessary. By keeping meticulous records, the transfer agent facilitates a smooth transition during corporate actions like stock splits.

On the other hand, the stock exchange generally provides a marketplace for buying and selling shares but does not maintain records of individual shareholders. The broker-dealer acts as an intermediary in the trading process, but they do not directly manage shareholder records. The issuer itself may have the ultimate responsibility for the shares, but it is the transfer agent's specific duty to maintain the shareholder registry and oversee the logistics of such changes.