Series 7 - General Securities Representative Exam
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All of the following are true of an UGMA account EXCEPT
Securities cannot be traded on margin
A
The custodian is responsible for the taxes
B
There can only be one minor and one custodian per account
C
When the minor reaches the age of majority, the custodial account is terminated
D
Explanations
In an UGMA account, the minor is responsible for the taxes. The minor's SS# is on the account