Entity Trading Account

AAA

DEFINITION of 'Entity Trading Account'

A trading account that belongs to a legal entity such as a corporation or limited partnership. There are certain advantages to entity trading accounts over individual trading accounts, such as tax deductions and certainty in tax law.

INVESTOPEDIA EXPLAINS 'Entity Trading Account'

An entity trading account needs one or more persons with authority to trade in the account. Such persons should be competent and honest traders in order to avoid losses in the account arising from poor trading decisions or unscrupulous behavior.

RELATED TERMS
  1. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  2. Position Trader

    A type of stock trader who holds a position for the long term ...
  3. Scalper

    A person trading in the equities or options and futures market ...
  4. Swing Trading

    A style of trading that attempts to capture gains in a stock ...
  5. Trading Account

    1. An account similar to a traditional bank account, holding ...
  6. Silent Partner

    An individual whose involvement in a partnership is limited to ...
Related Articles
  1. Forex Education

    Understanding Forex Rollover Credits ...

  2. Forex Education

    Forex Basics: Setting Up An Account

  3. Active Trading Fundamentals

    Limiting Losses

  4. Bonds & Fixed Income

    Can I invest my IRA in an entity, business ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center