Entity Trading Account

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.

BREAKING DOWN '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.

  1. Accounting Entity

    A clearly defined economics unit that is accounted for separately. ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, ...
  3. Accounting Event

    A transaction or change recognized on the financial statements ...
  4. Tax Accounting

  5. Actual Owner

    A person or entity that receives the benefit of ownership. Being ...
  6. Reference Entity

    One of the underlying parties involved in a credit derivative ...
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Hot Definitions
  1. Dove

  2. Cyclical Stock

  3. Front Running

  4. After-Hours Trading - AHT

  5. Omnibus Account

  6. Weighted Average Life - WAL

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