Account Types
A customer instructs their representative to buy 500 shares of XYZ stock "when the time is right." What authorization does the representative need to execute this order?
Time/price discretion = verbal OK. Asset/amount discretion = written POA required.
Complete Analysis & Legal Rationale
Time and price discretion (also called "not held" orders) only require verbal authorization. A power of attorney is not required because the customer has specified the asset and amount. The representative only has discretion over timing and price.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Written POA is required for full discretionary authority, not time/price discretion.
Matches the verified teaching point in the explanation.
A discretionary account is needed when the rep chooses what and how much to buy/sell.
Third-party authorization is for someone other than the customer trading the account.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.