Info 1: individual account definition
Info 2: how individual account works
Info 3: individual account vs person
Info 4: example of individual account
Opening information:
Individual account breaks into two words individual and words, individual means single or separate of one thing, and account means place of track and record for debits and credits.
Individual account means single separated record debits and credits in one place, so now let’s have a look at what is an individual account, how the individual account works in the public market, and what is the difference between an individual account and a person, finally one clear example about the individual account.
Info 1: individual account definition
Mr. Potuan is a stock Investor who would invest and build a huge amount of capital over time, but he invests in a multiple amount of Securities with different kinds of accounts with distinct brokers.
He would have an equity business stock brokerage account, in which he would buy any amount of business shares at zero brokerage. Because other than equity shares are charged by the commission.
He had another brokerage account for trading the commodities because such a broker only offered to provide a discount on commodities trading alone when compared to any other trade.
Moreover, potion also trades the forex market by choosing a separate broker to make the trade, because that forex broker offers very little commission and spread when compared to any other forex broker on the planet.
His three brokerage accounts are the one which is used for different purposes with distinct trading securities, each of the accounts is opened based on each unique benefit.
Here the accounts that are opened and traded under every unique best-offered public broker are what is called an individual account. So let’s dive into how the Individual account works in the public market very deeply.
Info 2: how individual account works
Individual accounts don’t represent any special specific physical object instead they are concepts that identify the only one investment portfolio used for investing activities.
Therefore any of the accounts that are used to control the entire fund in one portfolio is called an individual account in the public market.
If any one single person used different kinds of portfolios of accounts for various Investment methods, then such an account is known to be a multiple account but not as an individual account.
Next, if one of the professional Investors collects money from hundreds and thousands of people and makes the investment in their portfolio is known to be an individual account.
Moreover, the big fund manager who raises the capital as billions of dollars and manages the whole collection of funds in one portfolio, then that account is demonstrated as an individual account in the public market.
However, if any of the investors opened one investment account for stock equity investing and another investment account for forex trading from the forex broker which are illustrated as an individual account.
For this reason, the stock investment account and forex trading account are opened separately in a different brokerage firm, where each of these accounts is not connected, therefore they are categorized as individual accounts.
On the other hand, the same investor who opened the forex trading account under the equity account of the same brokerage with a different portfolio or the fund manager who managed and had hundreds of portfolios under the same category, then which are characterized as a nonindividual account.
Therefore any of the people who work under only one portfolio with any amount of involvement in various kinds of Securities are elaborate as an individual account.
Most people confuse the individual account and person, so let’s jump into the key difference in it anyway.
Info 3: individual account vs person
The difference between the individual account and individual people is, that individual people refer the one person or one human that involved in a variety of investment activities but as only one person with any amount of investment account.
On the other side, individual accounts are the ones that demonstrate only one portfolio under any amount of people, but it didn’t have any new portfolio of another account under such an individual account.
To make you more clear about the individual account, let’s look into one brief example below.
Info 4: example of individual account
Say you and your friend have an Investment account involved in public securities, where your friend has multiple amounts of portfolio accounts for involvement in securities activity as passive or active.
But you had one portfolio of one account which helps to connect multiple amounts of security within a single Portfolio account.
Here your friend is not considered to be an individual account but yours is an individual account.