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 ?
Since the tests assess the performance of the alternative discretionary accrual models under the financial statements restatements setting, the findings may not be generalized to firms with moderate levels of earnings management, e.
Specifically, in the language of market technicians, the discretionary sector has broken below its 43-week exponential average for the first time since 2007, and "we are close to getting a moving average crossover sell signal.
Warren residents, at their May annual town meeting, approved just under $25,000 as their share of discretionary funds and $22,767 as the town's share of the requested money for textbooks.
Of note is the nationwide surge by numerous state insurance regulators to invalidate discretionary clauses, finding that such provisions violate specific state insurance laws.
The discretionary side of our business is growing fastest.
Discretionary agencies and programs, and appropriated entitlement programs, are funded each year in appropriations acts.
The New York department also is ordering insurers and health maintenance organizations to remove discretionary clauses from existing policies and contracts within 30 days.
Because this college president's style was so intimidating, those below her were afraid to speak out when she involved them in improperly transferring college money to her discretionary fund.
Over two terms, Ronald Reagan increased discretionary spending 15.
For example, the diocese of Toronto raises about $100,000 each year at its Bishop's Company dinner to support Bishop Colin Johnson's discretionary fund, according to Peter Misiaszek, director of-stewardship for the diocese.
Total decreases in the burden resulting from discretionary program changes due to agency actions (and excluding changes due to PRA violations), resulted in a burden reduction of 96.
With the adoption of this new policy, agencies and facilities that will be attending the panel hearings at the 135th Congress of Correction in Baltimore next month will be sent a revised Response to Non-Compliance form, with the option to apply for a discretionary compliance.