A broker's discretionary account is an investment account that allows an approved broker to buy and sell securities without obtaining the client's permission for each transaction. But to be able to do so, the client must sign a discretionary disclosure with the broker. A discretionary account is also called a managed account.

Option B is incorrect. There are no limitations as to which securities can be traded in a discretionary account.

Option C is incorrect. All the proceeds of a discretionary account flow to the investor, less the agreed-upon broker fee.

Option D is incorrect. All trading accounts must comply with the rules and regulations set by the Securities and Exchange Commission, including discretionary accounts.