Automated Customer Account Transfer Service - ACATS
After you make your first billion or so, you’ll probably have lots of different types of assets (stocks, bonds, hedge funds, weird exotic pets) and you’ll work with different banks and brokerage firms as you juggle all that stuff. Each time you want to transfer an asset from one bank or brokerage company to another, there’s lots of paperwork to fill out (ah, the problems of the rich).
To help you with that, the National Securities Clearing Corporation (NSCC) created ACAT, a system that allows for easier transfer of assets between accounts and financial institutions. Hopefully, the relative ease of the system will give you more time to actually spend all that dough...like to go lunching in Bora Bora or diamond tossing in Ibiza.
Related or Semi-related Video
Finance: What are Securities?39 Views
finance a la shmoop. what are securities? remember Linus? if not ask your parents.;
if you don't remember who the peanuts were, well then Linus was the guy always [man on stage]
carrying the blankie. and always sucking on his thumb .yeah ew gross .the blanket
was his security yeah see where we went with that his blanket was a something
that he relied upon, leaned on, nurtured. it was certainty, it was Bank. that secure
you see in the beginning of security? well it's not there by accident, so
financially speaking a security secures money. or at least value. when you buy a [100 dollar bill]
security, you give money to someone or something like a corporation. and in
return you get a promise of some value. securities come in two flavors generally
the first is equity ,or ownership. a share of stock is a security entitling you to
whatever percentage ownership and that company the share represents. like if you
bought 500 shares in a company with ten million shares outstanding well that
security represents ownership of five hundred divided by ten million or point [pie chart]
zero zero zero zero five percent of the company.
so that's equity. there's also debt as a security. that's the second thing. like
bonds the bond that Apple offered at four percent yield that pays off in ten
years? yeah that's a bond security. and note [woman sits behind computer]
that securities can carry different guarantees. that is the underlying
promise that the security represents or secures different elements. like a senior
bond security secures that those bonds will be paid off ahead of junior bonds
which will be paid off before say subordinated junior debentures. so you
can see that there are multiple classes and flavors and types of securities all
falling under this tent, which fortunately for everyone doesn't smell
like it's been sucked for four years. good grief. come back next [Linus holds his blankie]
time for another finance lesson a la shmoop and hopefully he'll have washed
this thing by then.
Up Next
What are NASDAQ and the NYSE? NYSE stands for New York Stock Exchange, and NASDAQ is more or less a component of this. The stock exchange is where...
NASD is the National Association of Securities Dealers, a self-regulating organization that was ultimately replaced by FINRA.
What's the SEC? Easy. Seals Eating Candy. Or maybe Silly Elephants Canoodling? We can never remember. Guess it's time to watch this video and refre...