Discretion


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Discretion

Freedom given to the floor broker by an investor to use his judgment regarding the execution of an order. Discretion can be limited, as in the case of a limit order that gives the floor broker some distance from the stated limit price to use his judgment in executing the order. Discretion can also be unlimited, as in the case of a market-not-held order. See also: Market Not Held Order.

Discretion

The ability to make decisions on one's own without the need to consult others. For example, a discretionary account gives a broker the right to make significant investment decisions without permission from or even consultation with the account's owner. Likewise, certain investments give an investor more discretion than others. An option contract allows but does not require the holder to buy (or sell) the underlying, while a futures contract requires the exchange to take place.
References in periodicals archive ?
Part III probes institutional concerns for agencies, courts, and the statutes that arise from the discretion aversion syndrome, including agency gaming behavior, judicial conflicts regarding when nondiscretion exists, and compromised statutory purposes.
There are different factors taken into account in order to warrant a favorable exercise of discretion from DHS.
I don't think a full-length recoil spring guide rod is required on a Model 1911, so I'm pleased that the Discretion uses a standard setup.
This Article assesses various sources of bottom-up lower-level innovation by analyzing immigration enforcement discretion--in particular the relationship between case-by-case exercises of discretion on the ground and categorical executive policies.
The committee said, 'National discretion allows countries to adapt the Basel standards to reflect differences in local financial systems.
From a fair lending perspective, we believe lenders should think broadly about pricing discretion as including any judgmental adjustments to standard pricing, as listed on rate sheets or given by a pricing engine.
It is not unusual for employers to seek to retain an element of discretion whilst in reality implementing non-discretionary bonus schemes.
10) In the dissent, which called for an abuse of discretion for all evidentiary decisions, Judge Raymond M.
The court took each of the grounds which the defendants claimed warranted a reversal of the order of the trial court and determined that in none of the grounds cited by the defendants, had the trial court erred in either applying the applicable law or acting in abuse of the court's discretion.
Considerable discretion on the part of district and appellate courts is provided in the Federal Rules of Civil Procedure, Federal Rules of Criminal Procedure, and Federal Rules of Appellate Procedure, which include approximately fifty provisions that either explicitly or implicitly recognize the existence of discretion.
In 2010, the author conducted a study that examined the effects of municipal discretion on municipal performance.
My article propounds an eight-domain typology for classifying discretionary work behaviours; specifically, it prescribes that discretion over work behaviours can be classified into eight.