SIE practice questioneasyAccount Types - Custodial Accounts
A parent opens a custodial account for a minor. Who is the legal owner of the assets in the account?
- AThe custodian
- BThe parent
- CThe broker-dealer
- DThe minor✓ Correct answer
Explanation
Why D — The minor
The minor is the legal owner, though the custodian manages the account. The parent and custodian do not own the assets, nor does the broker-dealer.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Account Types questions
- Which benefit is unique to traditional IRA accounts compared to taxable brokerage accounts?
- A customer wants to buy stock using borrowed funds. Which account must be opened?
- A cash account allows an investor to:
- Which of the following account types is specifically designed to provide tax advantages for retirement savings?