Help me with these two

Guys, Can somebody explain these two: 1. Lower of cost and market 2. GIPS rule about discretionary, fee paying, advisory, what all should be included etc. Many thanks

  1. I think we discussed it couple of months back,691415,691429#msg-691429 2. I need help on that one too !!

for #2, in constructing composites for performance presentation the firm must include: all discretionary and non-discretionary accounts all fee-paying and non fee-paying accounts and the performance of sub-advisors, if the firm has reasonable lattitude to select the sub-advisors

getter- what’s the difference between discretionary and non-discretionary accounts ? Can you give any examples ?

I work in the investment industry and here are the only definition I know of discretionary and non-discretionary discretionary account- is when an advisor or money manager can buy and sell stocks WITHOUT the consent of the client. The client must sign a waiver and it effectively gives the advisor the power to trade at will to complete the client objectives. Think of it as a Power of Attorney but for an advisor or client non-discretionary account- is when all trades must be communicated with the client and the client must okay them before they go through. example: Discretionary: broker A thinks that Client A should sell Yahoo and buy Microsoft, the advisor can do so without client consent. non-discretionary: broker A things that Client B should short TSX, CANNOT put the trade through until the client gives consent.

Thanks a lot getter. Now I can actually relate to what they mean by that !!! And one more favor fee and non-fee paying account examples ?

some companies have a fee-based account where the client only gets charge an annual fee (which depends on the amount of assets they have) and they do not get charged commissions on trades non fee paying are client who get charged comissions on trades but dont pay the annual fee

saurya_s Wrote: ------------------------------------------------------- > Guys, > Can somebody explain these two: > > 1. Lower of cost and market > could refer to the value of an asset on the balance sheet? maybe inventory? What book did you see this?