Limited Discretionary Account

A type of account in which a client allows a broker to act on his or her behalf in buying and selling securities. In this case, the broker can make certain types of trades without prior consent from the client. In order for this arrangement to take place, the investor has to sign an agreement stating that they are allowing certain trades without consent.

This type of account is also referred to as a "controlled account".

This type of arrangement empowers a broker or advisor to initiate a certain trade on behalf of the client. The agreement will also specify any of the client's limitations. A client who gives a broker or advisor this type of power must have complete trust in the person, as the arrangement can be risky. However, any decisions a broker or advisor makes must coincide with the client’s goals.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Account stacking — is a broadcast industry term, which refers to the deployment of subscription Direct To Home (DTH) satellite receiving equipment at multiple geographical locations under a single customer account. It is often referred to as 2nd address service,… …   Wikipedia

  • Managed futures account — A managed futures account (MFA) or managed futures fund is a type of alternative investment. Managed futures accounts include, but are not limited to, commodity pools and commodity funds. Unlike mutual funds,[clarification needed] managed futures …   Wikipedia

  • полномочие; доверенность — В общем значении: письменный документ, уполномочивающий некоторое лицо выполнить определенные действия от имени лица, подписавшего документ. Документ, подписание которого должно быть засвидетельствовано нотариусом или иным должностным лицом,… …   Финансово-инвестиционный толковый словарь

  • Housing Benefit — is a means tested social security benefit in the UK that is intended to help meet Housing costs for rented accommodation. The primary legislation governing Housing Benefit is the Social Security Contributions and Benefits Act 1992.[1]… …   Wikipedia

  • Access control — is the ability to permit or deny the use of a particular resource by a particular entity. Access control mechanisms can be used in managing physical resources (such as a movie theater, to which only ticketholders should be admitted), logical… …   Wikipedia

  • Law, Crime, and Law Enforcement — ▪ 2006 Introduction Trials of former heads of state, U.S. Supreme Court rulings on eminent domain and the death penalty, and high profile cases against former executives of large corporations were leading legal and criminal issues in 2005.… …   Universalium

  • trust — n 1 a: a fiduciary relationship in which one party holds legal title to another s property for the benefit of a party who holds equitable title to the property b: an entity resulting from the establishment of such a relationship see also… …   Law dictionary

  • Medici bank — Infobox Defunct Company company name = Medici bank company fate = Shut down by authorities successor = foundation = c. 1397 defunct = 1494 location = Various; home branch in Florence, Italy industry = Banking key people = Giovanni di Bicci,… …   Wikipedia

  • Hein v. Freedom From Religion Foundation — SCOTUSCase Litigants=Hein v. Freedom From Religion Foundation ArgueDate=February 28 ArgueYear=2007 DecideDate=June 25 DecideYear=2007 FullName=Hein, Jay, et al. (Dir., White House Office of Faith Based and Community Initiatives) v. Freedom from… …   Wikipedia

  • List of Statutory Instruments of the United Kingdom, 1990 — NOTOC This is a complete list of all 1646 Statutory Instruments published in the United Kingdom in the year 1990.1 100* Caseins and Caseinates (Scotland) Amendment Regulations 1990 S.I. 1990/1 * Personal Community Charge (Relief) (England)… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.