A more thorough explanation:

Definition: Investment discretion refers to the ability of a person to make decisions about buying or selling assets for an account. This can include the power to decide what to buy or sell, even if someone else is responsible for the account. It can also involve influencing investment decisions in a way that is subject to regulatory rules and regulations.

Examples:

• A financial advisor has investment discretion over a client's account, meaning they can make decisions about which stocks or bonds to buy or sell without getting approval from the client for each transaction.
• A mutual fund manager has investment discretion over the fund's assets, allowing them to make investment decisions on behalf of the fund's shareholders.
• A corporate insider who has access to non-public information about their company's financial performance may have investment discretion over their own personal investments, but they must follow strict rules and regulations to avoid insider trading.

These examples illustrate how investment discretion can give someone the power to make important investment decisions on behalf of others or for their own personal gain. However, this power comes with responsibility and must be exercised within the bounds of regulatory rules and ethical considerations.