What Are Individual Stock Accounts?
Stock ownership accounts come in different forms. The individual stock account makes up the majority of trading accounts. The type of stock account owned determines its estate planning requirements.
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Individual Account
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As the name implies, only one person has the ownership and responsibility for an individual stock account. Absolute control belongs to the owner of record.
Discretionary Option
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Discretionary options on individual accounts give the stockbroker the ability to trade stocks for the client without consulting the client first.
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Margin Option
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An individual margin account allows the investor to trade marginable securities such as options and short sales on stocks.
Estate planning
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As sole owner of the account, the individual account holder plans the disposition of the account. A will normally dictates the account holder's wishes.
Advice
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Disposition rules for individual accounts vary by state. Seek the advice of legal counsel to determine specific state requirements.
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