Account Types
Which of the following is TRUE about UGMA/UTMA custodial accounts?
UGMA/UTMA: One custodian, one minor, irrevocable gifts, no margin, no options.
Complete Analysis & Legal Rationale
UGMA/UTMA custodial accounts have specific restrictions: gifts are irrevocable (cannot be taken back), margin trading is not permitted, and there can only be one custodian and one minor per account.
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:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.