ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Careers Videos 112 videos
What do you need to retire? Retirement - think: 401k, pension fund, IRA, roth IRA, etc. All of these savings socked away while you worked hard are...
What is liquidity? Think: water. It's liquid. It can be squeezed into little, tiny spaces and infused into large spaces. A defining trait of liquid...
What is amortization? Amortization tracks the decline in value of a contract or service, usually paid for in advance. You received $10,000 in advan...
Finance: What is Power Of Attorney (Trading Authorization)? 2 Views
Share It!
Description:
Power of attorney refers to the authorization to conduct business on legal and financial matters on behalf of another party. So...choose wisely.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Bonds
- Terms and Concepts / Banking
- Terms and Concepts / Board of Directors
- Terms and Concepts / Careers
- Terms and Concepts / Credit
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Incorporation
- Terms and Concepts / Insurance
- Terms and Concepts / Regulations
- Terms and Concepts / Stocks
- Terms and Concepts / Trusts and Estates
Transcript
- 00:00
What is power of attorney?
- 00:06
alright well little old Maybelle blue hair just can't think straight anymore
- 00:11
at least when it comes to managing her considerable volumes of money husband [kitchen oven on fire]
- 00:16
number four was loaded and had a weak heart and well he ate one too many [tombstone and grave]
- 00:21
cheeseburgers Maybelle trusts her grand nephew
Full Transcript
- 00:24
Beauregard to make trades on her behalf and has given him trading authorization
- 00:29
to manage her account that is he can make trades without pre-clearing each [Maybelle carries brownie trays]
- 00:34
one with her his status is analogous to having power of attorney in doing
- 00:40
various legal and financial things in life like you might sign over power of
- 00:46
attorney to your legalese proficient uncle to handle negotiating the terms of
- 00:51
your juggling contract because well with your busy schedule you need some help [hand signing power of attorney papers]
- 00:55
keeping all your you know balls in the air and you have the option between
- 00:59
granting general or limited power of attorney like if you want your uncle to
- 01:05
handle all of your finances general POA makes sense but if you only want him to
- 01:10
handle your contracts like in a specific narrow area like at this brokerage
- 01:14
account only with equities or dead or something like that well then a limited
- 01:18
POA would be more appropriate so ya trading Authority is the Wall Street
- 01:23
e-version of power of attorney you might really want to put a few grand into the
- 01:27
stock market but as far as you know the stock market is just a market where they
- 01:31
keep produce you know stocked so you turn over authority to make the actual [Maybelle at the food market]
- 01:36
decisions and perform the actual trades to someone you trust to you know more [Maybelle brings food bag home]
- 01:41
efficiently handle your money because if everything's left up to little old miss
- 01:44
blue hair her entire life savings could end up invested in sweaters for cats Inc [Maybelle dresses her cat in a sweater]
Related Videos
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
GED Social Studies 1.1 Civics and Government
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...