Joint account

In a joint account, every owner has equal access: any party can place trades, request withdrawals, and give instructions to the firm without the others' approval. Because ownership is shared, firms commonly issue checks and securities distributions in the names of all owners and send mail to a single address of record agreed to by the parties — though the exact disbursement mechanics are set by the firm's joint account agreement rather than by a uniform rule.

The two standard brokerage registrations are joint tenants with rights of survivorship (JTWROS) and tenants in common (TIC). Under JTWROS, when one owner dies the entire account passes automatically to the surviving owner or owners, outside of probate — the registration most commonly used by spouses. Under TIC, each owner holds a stated percentage of the account, and a deceased owner's share passes to their estate rather than to the co-owner. Some states also recognize tenancy by the entirety, which is limited to married couples. Firms document the chosen form on the new account form, since it controls the transfer of assets at death.

Joint ownership creates practical risks worth understanding. Any owner can drain the account, all owners are jointly responsible for obligations such as a margin debit balance, and the account can be exposed to the creditors or divorce proceedings of any owner. Firms therefore treat a change in joint registration as opening a new account, not editing an existing one.

Account registration types are core content on the SIE and the Series 7, where questions ask which form avoids probate, who may enter orders, and how distributions are typically paid. The Series 65 and Series 66 cover the same material from a suitability and fiduciary angle, since an adviser recommending a registration must consider each owner's objectives and estate plans.