You have decided to give your stockbroker the power to make trades in the market on your behalf,without notifying you of the trades prior to execution.This is an example of
A)a power agreement.
B)a discretionary account.
C)an independent account.
D)none of the above.

Question

Quizplus · Accepted Answer

Giving the stockbroker the power to make trades without notifying the client is known as a discretionary account. Under this arrangement, the broker has the authority to execute transactions based on their discretion and judgment, and the client does not need to provide prior approval for each trade.

You Have Decided to Give Your Stockbroker the Power to Make