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 ?
So once again, and to be clear, this deal does not add money to discretionary accounts.
The discretionary account - around $20 million - is used predominately for art acquisition and museum promotion.
These private banks and wealth managers typically manage clients' assets through defined mandates in discretionary accounts (often labeled 'conservative', 'balanced' or 'growth') that are very similar to the investment strategies of mutual funds.
6% cut from discretionary accounts that contain congressionally directed projects, and a 0.
That improvement was due overwhelmingly to a 49 per cent increase in profits derived from managing discretionary accounts.
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.
Discretionary accounts allow the broker to make trades in a customer's account without obtaining prior approval.
Still a standard brokerage technique, discretionary accounts allow brokers to buy or sell in a customer's account without prior approval for each transaction.
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.