A cap table is essentially a list of securities owned by a company, including stocks, convertible notes, equity grants and warrants. Cap tables can take various forms, adding features like breakdowns by groups of investors or founders or adding complex modeling formulas, but a cap table basically outlines the investors and which securities they own.
Why Should a Company Have One?
Cap tables give an overview of a company’s range of security owners according to factors like ownership structure and company development. A cap table can inform company activities, including decision authorization and fundraising efforts.
Keeping Cap Tables Up to Date
Cap tables should always be current. They should also be accessible by a range of applicable parties. A common cap table platforms are Excel and spreadsheets. This approach, though is inherently inefficient, requiring a lot of attention dedicated to things like manual updates and formulas.
Cap table management software, on the other hand, is designed to be a more efficient platform that makes edits and updates through built-in features managing important factors like ownership changes, AML compliance or cost basis tracking.
Stock Transfer Agents
Cap table management through software and associated transfer agent services is invaluable for handling the burdens of increasing regulations and maintaining positive shareholder experiences. Such services include:
- Dividend paying
- Corporate actions, like stock splits, M&As, divestitures, name changes, IPOs and more
- Certificate issuance
- Escrow services
- Proxy meetings
- Lost sharehoders
- Custom reports
- Accounting and recordkeeping
- Certificate printing
- Stock transfers
- Shareholder support
Colonial Stock Transfer Company, Inc., has been a successful and dependable Salt Lake City-area stock transfer agent service, registered with the SEC, since 1987. To learn more about the benefits of cap table management platforms, contact the experts at 801-355-5740 or online at www.colonialstock.com today.
