Trading, Accounts & Prohibited ActsQuestion 272 of 398
In a joint brokerage account (JTWROS or TIC), which statement about trading authority is generally true while all owners are living?
a.Only the owner listed first may enter orders
b.Neither owner may trade without a court order
c.Only the owner with the higher net worth may trade
d.Any owner may enter orders, but checks are typically payable to all owners
Explanation
In a typical joint account, each owner can enter orders and access the account, but distributions such as checks are generally made payable to all owners. The specific rights depend on the account agreement and registration type.
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