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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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.
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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].
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TELECOMWORLDWIRE-11 May 2000-European online trading accounts to total 16.8m by 2003, says study (C)1994-2000 M2 COMMUNICATIONS LTD