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Frauds and Scams > Trading Authorization

The following information is about Trading Authorization.

Trading Authorization Defined

Written document that permits a third party to do transactions on the behalf of the account owners. The document must be signed by all account owners. In brokerage, a full trading authorization allows the third party to place security orders and remove assets from the account. A limited authorization just allows buying and selling of securities--assets cannot be removed from the account.

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