A discretionary account is an account where clients transfer control of their trading account to brokers or advisors who select and execute trades for them.
Customers can customize these accounts by specifying restrictions or preferences for the investment style or theme. Recently, robotic advisors have also become popular tools for discretionary accounts.
Advantages of discretionary accounts include fast trade execution and expert services. Disadvantages of discretionary accounts include higher fees and the potential for negative performance.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.