Bank trust custodial accounts may not sound familiar, but IRA probably does, right? An IRA (Individual Retirement Account) is a type of bank trust custodial account. In this case, the investor contributes into the account, and the bank invests the money into interest-bearing investments, or the investor picks what it is invested in, case-by-case.
There are two types: one where the bank invests the money, and self-directed accounts, where the investor manages the investments. As you can imagine, sometimes banks are a bit reluctant to be custodian (coordinate, basically) the self-directed accounts, because they're not picking the investments themselves, and a brokerage fee usually applies. Often the self-directed accounts allow for investments outside the usual dull shares, etc., and allow for investing in things like real estate, gold, or even horses, if you're a racing fan.
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Finance: What is a member firm? (as oppo...6 Views
Finance allah shmoop What is a member firm Well so
what's the big club here Skull and bones No alphabetic
I know order of the phoenix No And our apologies
to this is rowling There it's one of the more
exclusive clubs on wall street A member firm is a
broker dealer where in at least one of the key
people who run the firm is a member of the
new york stock exchange or of another major exchange or
clearinghouse corporation or a player in an s r o
a self regulatory organization like you know finn ra or
see bob or one of dozens of other org's with
mysterious sounding acronyms and that's basically it The key here
is that your firm has somebody who's connected wired a
player in a not new york mafia kind of way
either and that they're able to trade on the exchange
floor giving their firm you know a handy leg up
and just a side note This club is also a
biggie on wall street but well you've got to be
over twenty one and have a keen appreciation of finance 00:01:05.984 --> [endTime] funds to get in that's the shmoop club
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