SIE practice questionmediumCustodial Accounts
In a custodial account (UGMA/UTMA), who is authorized to make investment decisions?
- AThe broker-dealer
- BThe minor
- CThe SEC
- DThe custodian✓ Correct answer
Explanation
Why D — The custodian
The custodian acts for the benefit of the minor. The minor (B) cannot direct trades. SEC (C) and broker-dealer (D) are not account decision-makers.
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