Discretionary account

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Discretionary account

Account over which an individual or organization, other than the person in whose name the account is carried, exercises trading authority or control.

Discretionary Account

A brokerage account in which a broker is able to make decisions 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. However, decisions made on a discretionary account must be made in accordance with the client's stated investment goals and according to the prudent man principle.

discretionary account

A brokerage account in which the customer permits the broker to act on the customer's behalf in buying and selling securities. The broker may decide upon securities, prices, and timing—subject to any limitations specified in the agreement. Because a discretionary account can be quite risky, it should be avoided unless the customer has a great deal of confidence in the broker. Also called controlled account. Compare advisory account. See also limited discretion.

Discretionary account.

A discretionary account is a type of brokerage account in which clients authorize their brokers to buy and sell securities on their behalf without prior consent for each transaction.

A client may set guidelines for the account, such as the types of securities the broker may purchase. However, the broker can buy and sell shares at his or her discretion.

Managed accounts -- also called separate accounts and wrap accounts -- are one type of discretionary account.

References in periodicals archive ?
Two years ago, council members increased the size of the discretionary accounts - spent on items such fireworks displays, scholarships and anti-gang programs - from $20,000 a year to $270,000.
as a senior managing director and portfolio manager for two proprietary and other discretionary accounts she established.
Argyle manages approximately US$800 million of assets including equity and debt instruments as well as real estate investments under ASM, Asia Recovery Fund (ARF), ASM Hudson River Fund (HRF), certain property fund and discretionary accounts.
When the agency finalized the so-called "broker dealer" rule in 2005, it defined all discretionary accounts as advisory accounts (not just those that are fee-based), it defined financial planning as an investment advisory service, and it strengthened the disclosure required on fee-based accounts.
Discretionary accounts allow the broker to make trades in a customer's account without obtaining prior approval.
The data cover contracts held by 126 investment advisory companies authorized to not only advise investors but also manage their assets in discretionary accounts.
The fund said authorities should seek to contain spending by restricting the use of the ministerial discretionary accounts and containing wage increases, moves which would free up funds for spending on education, health, justice and security;
Investment management for private banking customers usually consists of either discretionary accounts in which portfolio managers make the investment decisions based on recommendations from the bank's investment research resources or nondiscretionary accounts in which customers make their own investment decisions.
He proposes various revenue and entitlement offsets and in addition, would use his Social Security framework to add $30 to $40 billion annually to discretionary accounts starting in 2001.
That agreement does nothing to protect domestic discretionary accounts or to contain entitlement spending, and the tax cuts it assumes lead to ballooning revenue losses after 2002.
2 million into your personal accounts or discretionary accounts, don't you believe you'd be aware of it?
Colonial First State Custom Solutions general manager Chris Stevens said that CFS previously operated Managed Discretionary Accounts and Individually Managed Accounts for dealer group clients, however this was the first SMA launched by the group.