Account Types
A customer wants to open a brokerage account for her 10-year-old daughter. Which of the following is TRUE about this type of account?
Under UGMA/UTMA rules, gifts to custodial accounts are irrevocable - once deposited, the money belongs to the minor and cannot be reclaimed by the donor. The account must have only one custodian and one minor, uses the m
Complete Analysis & Legal Rationale
Under UGMA/UTMA rules, gifts to custodial accounts are irrevocable - once deposited, the money belongs to the minor and cannot be reclaimed by the donor. The account must have only one custodian and one minor, uses the minor's SSN, and cannot be a margin 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.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Federal Reserve Regulation T margin/credit rules for broker-dealers (verify current text).
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.