A discretionary account:
A)authorizes a broker to trade securities on your behalf.
B)charges an annual fee to cover all trading and management services.
C)is the term applied to brokerage accounts with check-writing and credit card services.
D)is the same as a wrap account.
E)is the account used to pledge securities as collateral for a margin loan.

Question

Quizplus · Accepted Answer

A discretionary account is one in which the account holder authorizes a broker or investment advisor to make trading decisions and execute trades on their behalf without obtaining prior approval for each trade. This is different from a non-discretionary account, in which the account holder must approve each trade before it is executed.

A Discretionary Account