A securities account sometimes known as a brokerage account is an account that holds
financial assets
A financial asset is a non-physical asset whose value is derived from a contractual claim, such as bank deposits, bonds, and participations in companies' share capital. Financial assets are usually more liquid than other tangible assets, such as ...
such as
securities
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
on behalf of an investor with a bank, broker or
custodian
Custodian may refer to:
Occupations
* Janitor, a person who cleans and maintains buildings
* Goalkeeper, in association football
* Fullback, in rugby, also called a sweeper
* Legal guardian or conservator, who may be called a custodian in some ...
. Investors and
traders typically have a securities account with the broker or bank they use to buy and sell securities.
Securities accounts can be of different types, such as a share account, options account, margin account or cash account.
Securities accounts are typically treated as
client funds, keeping them separate from the firm's funds. This separation meets the financial regulations of most countries.
References
Securities (finance)
Stock market
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