Different between Direct account and Nominee account

Posted on December 4, 2008
Filed Under Stock Basic | 1 Comment

Stock account divide into two types – CASH/DIRECT ACCOUNT and CLIENTS COLLATERAL TRADING Account (Nominee account). When we want to open an account in any stock brokerage firm, we have to know which type of account we want to apply. I will suggest always go for direct account.

Here is the different between “cash / direct account” and “clients collateral trading account (Nominee account)”.

CASH / DIRECT ACCOUNT

1) Direct individual account
2) CDS (stock) is held under client’s name
3) Entitle apply for IPO
4) Entitle for dividend and any voucher issue by company
5) Annual Report received

CLIENTS COLLATERAL TRADING – NOMINEE nominee account

1) CDS (stock) is held under company’s name
2) Not entitle to apply for IPO
3) Entitle for dividend but not any voucher issue by company
4) No Annual Report received

Comments

One Response to “Different between Direct account and Nominee account”

  1. kid on December 6th, 2009 3:22 am

    left a comment about P/E, can someone help plz? kinda urgent! Thanks tonz

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