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 ?
Results from the structural model reported in Figure 2 show that physicians' computer self-efficacy was positively related to physicians' discretionary FPIS use ([beta] = .32, p <.05).
It is apparent that few employers consider exactly what is meant by the term "discretionary", and to what exactly the discretion relates.
The committee recommends that it should be clarified that the maximum amount that can be recouped (because of non-compliance) should be no more than the earlier discretionary grant.
Dudley Council paid out PS669,500 in discretionary housing payments and PS639,900 went to helping people who were in difficulties because of reforms.
According to the budget documents, the government has also proposed to lower down the discretionary fund of opposition leader in the National Assembly from Rs0.6 million to just Rs1,000.
Former prime minister Muhammad Khan Junejo had first introduced the concept of discretionary spending with his Prime Minister's Special Local Development Programme in 1985.
Potential rewards from the discretionary period 2019 will be paid partly in the company's shares and partly in cash in 2022.
He also informed the members that the apex court had cancelled the 15 discretionary marks in a judgement on Oct 25 this year.
The minister said former prime minister Nawaz Sharif used Rs 21 billion discretionary funds during one year and also allocated Rs 30 billion to parliamentarians for development schemes at his own will.
The abolition of discretionary funds was on the top of the 7-point agenda placed for discussion before the federal cabinet, Chaudhry said.
In Singapore, there are junctions where drivers can make discretionary right turns at a time they deem safe when the green light is on.
The content of the course has been carefully designed specifically for discretionary managers who want to learn the basics of the quantitative research process.