Which of the following activities is NOT performed by a transfer agent?

The correct answer indicates an activity that is outside the typical responsibilities of a transfer agent. A transfer agent primarily serves to manage the ownership records of a company's securities, ensuring accurate maintenance of the ownership register. They facilitate the transfer of securities, ensuring that transactions are processed smoothly and accurately reflect ownership changes. Additionally, they manage certain corporate actions such as stock splits, dividends, and investor communications related to these events.

In contrast, investing client funds is not part of the core functions of a transfer agent. Transfer agents do not manage or invest funds on behalf of clients; their role is strictly administrative and record-keeping focused. This separation ensures that they maintain objectivity and impartiality in their record-keeping functions, which is essential for the integrity of securities ownership and transfer processes. Thus, the option regarding investing client funds accurately describes an activity that is NOT performed by a transfer agent.