segregated account

Definition

A separate account used by brokers to keep their customers' money separate from the firm's money. This is done for a few reasons, including creating a clear separation between the two groups of money so neither is used for the wrong purpose, and also to insure that the money can be easily identified as belonging to customers in case anything happens to the firm (such as bankruptcy).

Use segregated account in a sentence

You may want to try and open up a segregated account to give you some extra flexibility for your funds.

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The owner of my stock brokerage was arrested for dipping his hands into the segregated account and taking the money for his own purposes.

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SEGREGATED ACCOUNT A separate account used by brokers to keep their customers' money separate from the firm's money. This is done for a few reasons, including creating a clear separation between the two groups of money so neither is used for the wrong purpose, and also to insure that the money can be easily identified as belonging to customers in case anything happens to the firm

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segment segregated fund