discretionary account

discretionary account definition - finance
An investment account that gives the broker discretion to purchase and sell stocks and other investments without obtaining the prior approval of the account owner. The broker should have broad guidelines to follow that spell out what types of investments are allowed and explain what types of risks are permissible.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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