Uniform Gift to Minors Act (UGMA) Definition

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	Uniform Gift to Minors Act (UGMA) Term category: General Investing In 10 words or less: An act that allows minors to own securities, such as stocks, bonds, and mutual funds.


	Definition: The Uniform Gift to Minors Act (UGMA) allows minors to own securities, such as stocks. StockJargon Advice: Prior to the UGMA, young investors would have to have a trust set up in order to invest in the stock market. However, the UGMA allows parents to set up investment accounts for their kids, so long as the child has an appointed custodian on the account to oversee it. The UTMA is an extension to the UGMA.


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