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Accounting > Wrap Account
The following information is about Wrap Account.
Wrap Account Defined
at its most basic is an alternative form of commission arrangement between a securities firm and its client. Wrap accounts generally charge the client an annual fee based on assets in the account in lieu of a per transaction commission structure. In other wordsthe firm "wraps" together all the costs and charges them off as a "management fee”. Firms often add further features to wrap accounts such as investment managementcustodial servicesand enhanced reporting.
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