Discretionary Account


DEFINITION of 'Discretionary Account'

An account that allows a broker to buy and sell securities without the client's consent. The client must sign a discretionary disclosure with the broker as documentation of the clients consent.

This is sometimes referred to as a "managed account."

BREAKING DOWN 'Discretionary Account'

Sometimes broad guidelines are set by the client regarding trading in the account. For example, a client might only permit investments in blue chip stocks.

  1. Limited Discretionary Account

    A type of account in which a client allows a broker to act on ...
  2. Stuffing

    The act of selling undesirable securities from the broker-dealer's ...
  3. Managed Account

    An investment account that is owned by an individual investor ...
  4. Blue Chip

    A nationally recognized, well-established and financially sound ...
  5. Market-On-Close Order - MOC

    A non-limit (market) order executed as close to the end of the ...
  6. Broker

    1. An individual or firm that charges a fee or commission for ...
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