SIE: 8.2.1. Individual Accounts

8.2.1.  Individual Accounts

Most accounts are opened by individuals and are plain vanilla accounts. Individuals must fill out the new account form to open the account. An individual account has only one owner. A representative may not give account information to anyone else, including the spouse of the account owner.

The owner is the only one who can trade in the account, unless third-party trading authorization has been granted. There are three kinds of third-party trading authorization:

1. 1. Limited trading authority allows a third party to trade in the account, but not to make withdrawals.
2. 2. Full trading authority gives a third party authority to trade and to make withdrawals.
3. 3. Discretionary authority gives the representative authority to trade in the account without prior permission by the customer. Discretionary authority contains an implicit limited trading authority with it.

Without discretionary authority, a representative needs three pieces of information from the customer to make a transaction in the account. These can be remembered using the letters AAA:

1. 1. Asset—the name of the security
2. 2. Action—w