The list of a corporation’s stockholders that records the total number of shares, stock certificate numbers and the date on which the stock was issued. Any and all transactions (including both initial issues and subsequent transfers) related to the shares of a company’s stock must be dutifully recorded in a stock ledger.
When properly maintained, the sum of a company’s current and previous stockholders can be identified at any given moment by the information contained in a stock ledger. Depending on the state(s) in which a company conducts business, the company may be required to maintain a stock ledger through the services of a registered agent.
Every stock-related transaction affecting a company’s shares must be recorded in a stock ledger or a company may face steep reporting and compliance penalties. It may also remain vulnerable to other legal liabilities as well. In addition to recording the date a share was affected and the stock certificate numbers of those shares affected by a transaction, a stock ledger must be updated with the name and mailing address of the relevant stockholder, the class of shares involved, price paid per share and reason why shares were transferred (if applicable).
Executive: “I heard a rumor that my archnemesis has begun purchasing shares in my company! This will not stand, I tell you!”
Accountant: “Let me consult the stock ledger. What is the name of your archnemesis?”