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 is an Accredited Investor?9 Views
Finance a la Shmoop. What is an accredited investor. Well the difference
between an accredited college and an unaccredited college, can be like you
know the difference between Princeton, and the school of Feel Good Energy, that
your great Aunt Bertha, set up in her garage last year. Yeah different kind of [woman dancing in garage with disco ball]
college. Well accredited investors work on a
similar idea. A bunch of someone's have come along and agreed that accredited
investors, have a bunch of qualifications. In other words they're legit. So
accredited investors are simply investors, who qualify to do a certain
investment. Usually accredited means, that they have credit, or assets, or wampum, or
knowledge, like intellectual capital, instead of financial capital, or along with
both. Which means that they're big boys and big girls, who are able to invest a
large amount of money, in a risky venture. Officially they're investors who have an
income of at least $200,000 for the past two years, three hundred thousand for [checklist for investors on chalkboard]
joint accredited investors, like married people or partners, or have a net worth
of at least a million bucks individually, or jointly, or our executives, partners, or
directors of the entity issuing those securities. Meaning raising the dough
itself. Institutional investors, such as mutual funds, hedge funds, and pension
funds, also fit the bill. Additionally entities can be considered
accredited, but their threshold is 5 million bucks in assets. By the way if [man talking on lawn]
all the owners of an entity, like a law firm or something like that, are
accredited, well then the entity is considered accredited
as well. So yeah they're accredited investors. Not to be confused with a
credited investor, who is really excited to have a small part in a movie. [guy in movie theater]
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