Over 700 finance terms, Shmooped to perfection.
No, not the kind of account that Jay-Z opens just because he's Jay-Z. He might, but not because he's a (w)rapper. A wrap account is one where the broker manages the portfolio for an annual fee, usually based as a percentage of the assets in the account. The fee covers all administrative, commissions and other expenses (but usually does not cover any fees or charges imposed by an exchange or a regulatory body). The benefit of a wrap account is that it prevents investors from being swamped by commissions because they have a trigger-happy broker who trades like a lab rat on crack.