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 ?
Last month, the government announced its plan to implement the real-name account policy while prohibiting banks from issuing a new virtual coin trading account for newcomers.
Therefore, a pledge of the securities deposited in the margin trading account would be a prudent approach once enabling machinery is tested.
That is based on the fact that the two mill accounts in Lyman Mills' home office (general) ledger constituted "trading accounts" which contained "entries for non-manufacturing expenses and sales in addition to entries for manufacturing expenses" to "provide profit and loss data useful in determining the semi-annual dividend to shareholders" [p.471].
The SESC has suspected that the securities companies failed to duly identify the lawyer upon his opening of the trading accounts which were fronted with the names of other persons and eventually allowed the lawyer to carry out the trades through such fraudulent means, the sources said.
The Securities Department investigation found that Zedlitz's only relationship with Scottrade was a trading account he opened a few days before his first conversation with AR1.
* By contrast, the market risk capital figures provide little information about differences in market risk exposure across institutions beyond what is already conveyed by the relative size of an institution's trading account.
If you have an idea that's ready to go, but not trading, all of the above may be needed with the exception of trading accounts.
For example, securities held in trading accounts and financial derivatives are now marked to their market values.
E*Trade Japan is the parent company of E*Trade Securities Co., the largest Japanese online brokerage with 250,000 trading accounts.
Millions of people have opened online trading accounts, while many others have become "day traders" in the market.
We may be in a market correction, but that hasn't slowed the estimates for growth in online trading accounts, according to the latest figures from International Data Corp., which say that the number of online accounts in Europe will grow from 1.85 million at the end of 1999 to 4.4 million by the end of 2000--and to a whopping 16.8 million by 2003.
TELECOMWORLDWIRE-11 May 2000-European online trading accounts to total 16.8m by 2003, says study (C)1994-2000 M2 COMMUNICATIONS LTD http://www.m2.com