Permission by a client that allows a broker to make certain stock and option trades without first consulting the client about the trade.
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Permission from an investor giving his/her broker the ability to make some investment decisions on a brokerage account without consulting the investor. Such decisions must be made in accordance with the customer's stated investment goals. This contrasts with a discretionary account, which gives the broker much more independence. Limited discretion is also called limited trading authorization.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The authority given a broker to make certain investment decisions without first getting in touch with the investor. The investor must sign a written agreement providing the broker with limited discretion. Also called limited trading authorization.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.