Corporate Accounts: Corporate Charter vs. Corporate Resolution
When opening a margin account for a corporation, which document specifies WHICH individuals have legal authority to trade on behalf of the corporation?
The Corporate Resolution (certified by the Corporate Secretary) designates WHICH specific individuals (officers/directors) are authorized to place orders and manage account assets.
Complete Analysis & Legal Rationale
The Corporate Charter (Articles of Incorporation) proves that the corporation exists and verifies whether the company's bylaws permit margin trading.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Corporate Resolution designates authorized traders and signatories.
Corporate Charter confirms legal existence and margin trading authorization, but does not list individual traders.
Certificate of Good Standing verifies active state corporate registration.
Form W-9 verifies taxpayer ID (EIN).