Free Version

Dashboard
Review Topics
Quizzes
Practice Exams
Flashcards
Vocabulary
Overheard at Shmoop: "All I hear all day long at school is how great bison is at this or how wonderful bison did that. Bison bison bison!"

Discretion

Datcretion, Discretion

Discretion allows advisers to make purchase and sell decisions in a client’s account without the client’s prior knowledge or approval. To do this legally (key word here,) the adviser must have discretionary authority over the account.

Written discretionary authority must be kept on file within the customer’s account. The only instance when spoken discretionary orders are permitted is the 10 days following the first transaction in the client’s account.

A spouse o...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

$65.65
Next: Prudent Man Standards
Prev: Custody

*Securities is a registered trademark of the College Board, which was not involved in the production of, and does not endorse this product.