custodian meaning in stock market


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Another popular use for this type of account is teaching children about the basics of investing. Usually, a close relative will be appointed.Personal FinanceBankruptcy ... CallUrl('thismatter>comhtm',1), ~TildeLink(): The person appointed by the donor to manage a minor's account. This makes the custodial account a very low-maintenance way to open an account for your child. CallUrl('www>stocks-for-beginners>comhtml',1), Previous MF Global fallout: Is change in the ~TildeLink()ship the answer?Next MF Global: One year and countingRelated Terms ... CallUrl('www>futuresmag>com<2012<10<24stock-trading-infocentre>comhtml',0), Direct rolloverMovement of tax-deferred retirement plan money from one qualified plan or ~TildeLink() to another.

While custodial accounts can offer many benefits, they are not the perfect fit for everyone. What kind of assets you can invest depends on what type of custodial account you decide to open. This involves borrowing shares, selling them and then buying them later to return the loaned shares. Many people may establish a custodial account to serve as a kind of college fund. Trustees are appointed to ensure compliance with the trust indenture and represent bondholders to enforce their contract with the issuers.Unit investment trust (municipal) ... CallUrl('www>alamocapital>com
Some states do not allow you to open UTMA accounts, so be sure to research local laws near you. ~TildeLink()s cannot be brokers.¶Reply ... CallUrl('zerodha>com Action Alerts PLUS is a registered trademark of TheStreet, Inc.

In finance, a custodian is simply referred to as a financial institution responsible for holding and safe-keeping customers’ securities, trust funds and other assets to help them prevent loss or theft. Once the custodial account’s beneficiary comes of age (also called “reaching majority”), they gain control of the account from the custodian. A custodial account is a way to set aside money for your child's future, or teach them about investing. A custodial account is any type of financial account set up by one person for the benefit of another. It is comparable with a branch of a bank if a Depository is likened to a bank. However, custodial accounts come with several benefits that make them attractive to many parents. The securities and other assets can be held in physical or electronic form depending on whichever form they take. When you are thinking about saving for your child’s future, you may wonder what kind of account would work best. There are special considerations where the investment advisors function as custodians for customer funds. See: Depository Trust Company (DTC) ... CallUrl('www>trading-glossary>comasp',0), A custodian bank is a financial institution that is responsible for holding and keeping safe the various assets of an investment company. There are no contribution limits for UTMA accounts, meaning that you have no cap on how much you can save for your child — regardless of income.

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