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Finance: What is Power Of Attorney (Trading Authorization)? 2 Views
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Power of attorney refers to the authorization to conduct business on legal and financial matters on behalf of another party. So...choose wisely.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Bonds
- Terms and Concepts / Banking
- Terms and Concepts / Board of Directors
- Terms and Concepts / Careers
- Terms and Concepts / Credit
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Incorporation
- Terms and Concepts / Insurance
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- Terms and Concepts / Stocks
- Terms and Concepts / Trusts and Estates
Transcript
- 00:00
What is power of attorney?
- 00:06
alright well little old Maybelle blue hair just can't think straight anymore
- 00:11
at least when it comes to managing her considerable volumes of money husband [kitchen oven on fire]
- 00:16
number four was loaded and had a weak heart and well he ate one too many [tombstone and grave]
- 00:21
cheeseburgers Maybelle trusts her grand nephew
Full Transcript
- 00:24
Beauregard to make trades on her behalf and has given him trading authorization
- 00:29
to manage her account that is he can make trades without pre-clearing each [Maybelle carries brownie trays]
- 00:34
one with her his status is analogous to having power of attorney in doing
- 00:40
various legal and financial things in life like you might sign over power of
- 00:46
attorney to your legalese proficient uncle to handle negotiating the terms of
- 00:51
your juggling contract because well with your busy schedule you need some help [hand signing power of attorney papers]
- 00:55
keeping all your you know balls in the air and you have the option between
- 00:59
granting general or limited power of attorney like if you want your uncle to
- 01:05
handle all of your finances general POA makes sense but if you only want him to
- 01:10
handle your contracts like in a specific narrow area like at this brokerage
- 01:14
account only with equities or dead or something like that well then a limited
- 01:18
POA would be more appropriate so ya trading Authority is the Wall Street
- 01:23
e-version of power of attorney you might really want to put a few grand into the
- 01:27
stock market but as far as you know the stock market is just a market where they
- 01:31
keep produce you know stocked so you turn over authority to make the actual [Maybelle at the food market]
- 01:36
decisions and perform the actual trades to someone you trust to you know more [Maybelle brings food bag home]
- 01:41
efficiently handle your money because if everything's left up to little old miss
- 01:44
blue hair her entire life savings could end up invested in sweaters for cats Inc [Maybelle dresses her cat in a sweater]
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