Series 99: Exercise

Exercise

Match the description with the type of account.

1. A. UGMA accounts
2. B. Transfer on death (TOD) accounts
3. C. Prime broker accounts
4. D. Partnership accounts
5. E. Individual accounts
6. F. Corporate accounts
7. G. Sole proprietorship accounts
8. H. Institutional accounts
9. I. Joint accounts
10. 1. ___ These accounts can only be opened by a living, competent person who is not a minor.
11. 2. ___ These are accounts of a bank or investment company, a registered investment adviser, or any other business or person with total assets of at least $50 million.
12. 3. ___ These are accounts in which more than one party can access and trade in the account.
13. 4. ___ In these accounts, executing brokers engage in trading activity rather than the prime brokers.
14. 5. ___ In these accounts, the owner is entitled to all profits and is responsible for all the business’ debts, losses, and liabilities.
15. 6. ___ For these accounts, a partnership agreement must be signed, showing who will have trading authority in the account.
16. 7. ___ For these accounts, a business is considered a “person” from the perspective of tax laws, meaning that it can sue and be sued, hire and fire employees, enter into contracts, incur debt, and pay taxes.
17. 8. ___ For these accounts, a custodian manages the account for a minor.
18. 9. ___ Accounts where the assets pass to a named beneficiary without having to go through probate.

Answer the following questions.

1. 10. A joint brokerage account owned by two unmarried persons in which the death of one of the owners causes his share of the assets to pass to his estate is referred to as:
2. A. Tenancy by the entirety
3. B. Joint tenants with rights of survivorship
4. C. Joint tenants in common
5. D. All of the choices listed
6. 11. Within a Uniform Transfers to Minors Act account, assets must be transfe