A(n)________ account represents the money over which you give a broker power to trade for you.
A)discretionary
B)discount
C)stock purchasing
D)securities
E)indemnity

Question

Quizplus · Accepted Answer

A discretionary account is one where you grant a broker the authority to make trades on your behalf without obtaining explicit consent for each transaction. This implies that the broker has the power to execute trades at their discretion, but only within the guidelines provided by the client. As a result, a discretionary account is also known as a managed account, a controlled account, or a sweep account. This type of account is appropriate for investors who want to delegate responsibility for making trades to a broker who has more knowledge, skills, and experience than they do.

A(n)________ Account Represents the Money Over Which You Give a Broker