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10 Cards in this Set
- Front
- Back
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Fiduciary
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a third party who has been legally appointed to prudently manage the account on behalf of another person or entity.
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custodial
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an adult who has been designated to act on behalf of a child, who is the beneficial owner of the account.
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Cash Account
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The basic investment account, in a cash account a customer pays in full for any securities purchased.
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Margin Accounts
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Allows a customer to borrow money for investing.
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partnership agreement
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an unincorporated association of two or more individuals. Partnerships frequently open cash, margin, retirement, and other types of accounts necessary for business purposes.
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Prudent investor Rule
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Requires fiduciaries to make wise and safe investments.
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Discrectionary Account
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An account setup with preapproved authority for a registered represetative to make transactions without having to ask for specific approval.
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Trading Authorization
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A document (limited power of attorney) that is filed in order to allow a broker/dealer the ability to make discretionary transactions for a client.
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JTWROS
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Joint Tenants with Right of Survivorship: ownership stipulates that a deceased tenants interest in the account passes to the surviving tenants.
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TIC
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Tenants in Common: Ownership provides that a deceased tenants fractional interest in the account is retained by that tenants estate and is not passed to the surviving tenant.
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