Brokerage account

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Brokerage Account

Money given to a broker or brokerage for investment purposes. One manages one's brokerage account differently according to the type of brokerage; that is, one may meet with a broker, call on the telephone, or give orders over the Internet. Brokerage accounts are divided into two main categories: advisory accounts and discretionary accounts. Brokers are only allowed to conduct transactions on advisory accounts on the specific orders of the account holder, or under very specific instructions. On the other hand, brokers have a great deal more leeway over discretionary accounts, conducting transactions not prohibited by the account holder in accordance with the holder's investment goals and the prudent man rule.

Brokerage account.

To buy and sell securities through a broker-dealer or other financial services firm, you establish an account, generally known as a brokerage account, with that firm.

In a full-service brokerage firm, a registered representative or account executive handles your buy and sell instructions and often provides investment advice.

If your account is with a discount firm, you are more likely to give your orders to the person who answers the telephone when you call.

And if your account is with an online firm, you give orders and get confirmations electronically.

In all three cases, the firm provides updated information on your investment activity and portfolio value, and handles the required paperwork. And in some cases, your brokerage account may be part of a larger package of financial services known as an asset management account.

References in periodicals archive ?
In evaluating their responsibilities with respect to brokerage accounts, broker-dealers have long taken comfort in case law that has defined the scope of their professional duties narrowly.
* Managed accounts -- about 228,0001 retail brokerage accounts held at Merrill Lynch as of February 2015 under the discretionary management of a Merrill Lynch registered representative or Merrill Lynch-approved outside investment adviser; and
This dual strategy on the DOL rule stands in marked contrast to the approach being taken by Merrill Lynch, which also has explained that "legacy retirement assets" in Merrill IRA brokerage accounts before April 10, 2017, "can remain in that account," given the grandfather provisions of the DOL rule.
Participant-directed 401(k) plan investment has expanded from an investment menu to include a self-directed brokerage account option.
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They would use computer programs secretly installed on victims computers that recorded personal financial information, such as credit card and brokerage account numbers.
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Department of Labor, the Pension Benefit Guarantee Corporation, and the Internal Revenue Service will now allow employee benefit plans to report investments made through participant-directed brokerage accounts as a single line item on the Schedule H of the Annual Return/Report Form 5500, rather than by type of asset on the appropriate line item for the asset category (e.g., common stocks, mutual funds).