### Question
How does the law define trading account?


### Answer
Under *12 U.S.C. § 1851*, **trading account** is defined as:

> any account used for acquiring or taking positions in the securities and instruments described in paragraph (4) principally for the purpose of selling in the near term (or otherwise with the intent to resell in order to profit from short-term price movements), and any such other accounts as the appropriate Federal banking agencies, the Securities and Exchange Commission, and the Commodity Futures Trading Commission may, by rule as provided in subsection (b)(2), determine

#### Citation:
  - *12 U.S.C. § 1851*
  - Heading: **CHAPTER 17-BANK HOLDING COMPANIES**

