Discretionary vs. Non-Discretionary Orders

What this video covers

• The three elements that define discretion: asset, action, and amount, and why only one rep-chosen element flips the entire order classification
• Why verbal authorization for discretionary trading is always invalid, and when written authorization must be in place relative to the first trade
• The separate requirement that a principal must promptly approve each discretionary trade after execution
• How the time and price exception keeps an order non-discretionary when the customer locked in all three A's
• Why the time and price exception expires at the end of the business day, and what happens if the rep executes on the next calendar day
• How to classify real exam phrasing such as "buy 100 shares of Apple whenever you think the price is right" versus "invest $10,000 in something good"