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 ?
The discretionary fund had been specially allocated for the use of the prime minister to finance covert operations in which the state may not be directly involved.
Krishnan [25] in an article entitled" Audit quality and the pricing of discretionary accruals" examined the relationship between audit quality and the pricing of discretionary accruals.
In a discretionary business, you take a longer-term view of securities that you take in your portfolio.
CJ added that Indian High Court had declared not to give discretionary powers to chief minister but Indian Supreme Court void this decision after earthquake and floods had destroyed everything.
All groups reported similar amounts of sun exposure during the study period; 78% of daily sunscreen users and 76% of discretionary sunscreen users reported being outdoors for less than 50% of their weekend time.
Jack is helping to support Mark (hopefully temporarily) and wants the comfort that upon Jack's death, Mark, and not Mark's former wife, would benefit from assets left in a discretionary trust for Mark.
Ismail Khan said they had spent 47 percent of the discretionary budget.
However, while most countries require extensive transparency on mutual funds such as performance data after fees, the total expense ratio, twice-yearly publication of fund holdings, the benchmark index, there is very little disclosure to the public on the discretionary accounts by private banks and wealth managers:
Therefore, the move by a high- powered Group of Ministers ( GoM) to end ministers' discretionary powers is seen as a face- saving measure in the wake of a relentless attack by the Opposition.
Many times, he explains, consumer discretionary stocks lead consumer staples during bull markets and underperform during bear markets.
00 for handling each item paid by the discretionary overdraft privilege.
Warren's total minimum school assessment for fiscal 2009, including discretionary funds, was $2.