uniform gift to minors act sets forth guidelines for the gifting of cash and securities to minors and for the operation of accounts managed for the benefit of minors. Once a gift is given to a minor, it is irrevocable.
Applying "Uniform Gift to Minors Act / UGMA" to Securities Exams:
Minors can not own securities in their own names because minors can not enter into legally binding contracts. The conditions under which a security is bought or sold represents a legally biding contact. As such the securities must be held in the name of a nominal owner for the benefit of the minor.