In an accumulation account order, these orders are filled last by the manager after other orders.

• A. True
• B. False
• C. Only if interest exists
• D. Only if the client requests

Answer: (A)

Accumulation accounts involve a customer instructing a dealer to build a position in a municipal security over time. In practice, orders for an accumulation account are treated as lower priority in the allocation process. The manager first fills other customer orders and uses any remaining inventory to satisfy accumulation-account requests. This approach helps preserve fairness among investors and prevents accumulation orders from unduly influencing price or allocation for others. It’s not about whether interest exists or whether the client asks for it; rather, it follows the standard priority structure in underwriting allocations, with accumulation orders typically being filled last after higher-priority orders have been satisfied.