1.2.3.5 Moving Funds In and Out of Account
Periodically investors need to transfer funds in or out of their accounts. Several methods are available for broker-dealers to use:
Check. A check is a signed, unconditional promise to pay a specified amount of money to a specified payee. If a check is “negotiable,” it may be cashed—the payee may sign it and take the money—or the payee may endorse the check and sign it over to a third party, who then can cash it and take the money. Within the financial industry, customers use checks to instruct funds to be transferred from their bank accounts into investment accounts. When a customer wishes to make a deposit, the customer may write a check directly to the broker-dealer. Or the customer may deposit a thi