A Discretionary Account

question 97

Multiple Choice

A discretionary account:

• A)authorizes a broker to trade securities on your behalf.
• B)charges an annual fee to cover all trading and management services.
• C)is the term applied to brokerage accounts with check-writing and credit card services.
• D)is the same as a wrap account.
• E)is the account used to pledge securities as collateral for a margin loan.

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Definitions:

Intangible Assets

Intangible assets are non-physical assets owned by a business, such as patents, trademarks, and goodwill, that have value in commercial operations.

Liquid Resource

Assets that can be quickly and easily converted into cash without significant loss in value.

Inventory

the raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Solvency Ratios

Solvency Ratios measure a company's ability to meet its long-term debts and financial obligations, indicating its financial health.