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 fo ...
on behalf of an investor with a bank, broker or
custodian. Investors and
trader
Trader may refer to:
* Merchant, retailer or one who attempts to generally buy wholesale and sell later at a profit
* The owner of a trading post, where manufactured goods were exchanged with native peoples for furs and hides.
* Trader (finance), ...
s 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 Security segregation, in the context of the securities industry, refers to regulatory rules requiring that customer assets held by a financial institution (generally a brokerage firm) be held separate from assets of the brokerage firm itself in ...
, 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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