SIE Exam Question 450: Answer and Explanation

Question: 450

In which type of account does the nominal owner of the account enter all orders for the beneficial owner of the account?

• A. Discretionary account.
• B. Authorized account.
• C. Custodial account.
• D. Fiduciary account.

Correct Answer: C

Explanation:

C: In a custodial account, the custodian is the nominal owner of the account and carries on all transactions for the minor, the real beneficial owner of the account.