OVERVIEW OF TYPES OF ACCOUNTS
- Joint accounts
If the name of two or more adults appear on the account, each will be allowed some form of control over the account. This type of account must be designated as either Joint Tenants in Common (JTIC) or Joint Tenants with Rights of Survivorship (JTWROS).
All owners must sign the account forms. Both types of joint accounts provide that any and all tenants may transact business in the account. Withdrawals from the account are made payable to all the names in which the account is registered, and if a check is issued it must be endorsed by all tenants.
Not withstanding the above, joint tenants may sign and execute a separate document specifically authorizing one of them to trade and withdraw money and securities from the account.
The main difference in the two types of joint account is in the disposition of the securities and cash in the account at the time of death of any one of the tenants. Joint Tenants in Common provide that the fractional interest in the account of the deceased tenant is retained by the tenant’s estate and is not passed to the surviving tenants. Joint Tenants with Rights of Survivorship stipulates that a deceased tenant’s interest in the account passes to the surviving tenant(s).
- The special case of options accounts
To engage in options trading a customer must sign a separate options agreement that explains the risks and requirements of options trading, and evidences his understanding and acceptance of the Options Clearing Corporation (OCC) guidelines and the regulations of the options exchange.
The Options Clearing Corporation (OCC) guidelines are contained in a document entitled "OCC Options Disclosure Document," which BAC Florida Investments must provide to clients wishing to engage in options trading.