If you stuck your hand in the cookie jar when someone was in the next room, this is an example of not acting with discretion. Been there, done that. We know you have.
In finance-speak, this usually applies to the situation where a stockbroker "on the floor," as they say, executes a special order type based on their best judgment at the time. A with discretion order is a flexible order type, also known as a “not-held order,” which gives the broker some flexibility in getting the best price at the best time. Unlike a market order, a with discretion order doesn’t execute at the same time you order the trade.
With discretion orders are good during periods of volatility where things are going up and down by leaps and bounds. They’re also good for brokers that are good at seeing patterns, or for those who don’t want to commit to a stock at a price more than x, i.e. an upper limit. If the broker’s head is in the clouds, however, setting a with discretion order with an unrealistic upper limit will mean the trade won’t execute.
Sometimes, you just have to go for it. The cookies, we mean.
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Finance: What does it mean to have fiduc...51 Views
Finance a la Shmoop! What does it mean to have fiduciary obligation? Alright well
fiduciary refers to the responsible person, who has oversight, above a given
financial transaction, or process. That is, it is the fiduciary obligation, of the
head of a corporation's Audit Committee, to be certain that the
accounting process is handled fairly, objectively, inclusively and thoroughly [boss overseeing worker]
and there are a few other ly's in there, but well you get the gist. Doesn't it
seem strange, that some companies just seem to get into the same kind of
trouble again and again. Remember the BP oil spill, well it wasn't the first time
they'd had, an accident. You know, if you can call that spill only an accident.
What kind of oversight did they have? Any? Well some companies just have a [man carrying oil barrel
corporate culture that's run by the notion, that well, whatever isn't caught
as a crime, is legal. Lots of Wall Street stock brokerages came and went this
way. Yah, remember the Wolf of Wall Street? Kind of like that. Well what is
the obligation of a responsible party when faced with ethical dilemmas? Where
does the obligation start and stop? Should fiduciaries be held to a higher
personal standard than normal people? Yah, kind of the, you know, Harvey
Weinstein effect there. Yes, No, maybe, alright. Right, all three times. [question ABCD chart]
It's definitely yes, no, or maybe.
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