The ratio is calculated by dividing current assets by current liabilities. A theory which asserts that if many investors have short positions in a stock, the stock's price must inevitably rise because the short positions must eventually be covered by purchases of the stock. An account opened on the behalf of a minor by an adult who acts as custodian. This type of account is opened because minors cannot enter into contracts. Thus, they cannot make securities transactions for themselves.
Any assets placed into a custodial account are irrevocable.
Custodian A financial institution, such as a brokerage firm, or a bank that holds stock certificates and other assets on the behalf of a mutual fund, corporation or individual. An individual may also act as a custodian in the case of an account for an minor. Custodian Bank Bank assigned by a mutual fund to act as its custodian. The bank performs clerical functions and holds the fund's cash and securities. The total amount of credit extended by New York Stock Exchange member firms to finance customers' security purchases.