What does discretionary mean in finance?

The term “discretionary” refers to the fact that investment decisions are made at the portfolio manager’s discretion. This means that the client must have the utmost trust in the investment manager’s capabilities.

What is considered a discretionary trade?

“Discretion” in this context refers to discretionary trading, which is when a broker makes trades in a customer’s account without first consulting the customer. That generally means the broker can decide at any time how much of a stock, bond or other security to buy or sell, and at what price, without customer input.

What is discretionary vs non-discretionary?

A discretionary account is an account that gives an investment adviser the authority to make individual trades without the consent of their client. A non-discretionary account is an account where the client always decides whether or not to conduct a trade.

What is discretionary account?

A limited discretionary account is a type of account in which a client allows a broker to act on their behalf in buying and selling securities. In a limited discretionary account, the broker can make certain types of trades without prior consent from the client.

What does discretionary mean in business?

A discretionary expense is a cost that a business or household can survive without, if necessary. Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops.

What is discretionary transaction?

A discretionary transaction is a transaction that is volitional and either results in an intra-plan transfer involving an issuer equity securities fund, or is a cash distribution funded by a volitional disposition of an issuer equity security.

What are discretionary transactions?

Are salaries discretionary costs?

Your total salary cost is fairly predictable – expenses on marketing campaigns or travel is much more volatile. All this makes discretionary spend especially hard to manage.

What is 16b 3?

Rule 16b-3 exempts issuer equity securities transactions between the issuer (including an employee benefit plan sponsored by the issuer) and an officer or director.

What is short-swing profit?

Abstract. The short-swing profit rule is a federal statute that requires insiders to forfeit any trading profit earned from a combined purchase and sale that occurs within a six-month period.

What is a discretionary financial advisor?

Discretionary investment management is a form of investment management service in which buy and sell decisions are made by a trusted portfolio manager for a client’s account. The term “discretionary” refers to the fact that investment decisions are made at the portfolio manager’s discretion.