Discretionary Account
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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." |
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Investopedia explains '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. |
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