Business and Personal Finance Dictionary

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• WRAP OR WRAP ACCOUNTS
  
  Refer to accounts domiciled at brokerage firms for which the client or beneficial owner of the account pays a fee. This fee is often in lieu of paying commissions at least for a certain level of activity. The amount of the fee structure typcically ranges between 1-2 percent of the assets. Sometimes, the brokerage firm offers debit/credit cards collateralized by the underlying securities in the account. There may also be check/draft writing privileges. If transactions are relatively few this may be an expensive way to maintaim an account because the client is charged whether there is activity or not.
  
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