Which best describes a prime account?

A prime account is designed to centralize control of multiple trades and cash across different brokers, which allows for greater efficiency in managing investments. This type of account often caters to institutional clients or high-net-worth individuals who require advanced trading capabilities and comprehensive administration of their investment strategies.

The structure of a prime account offers clients access to a variety of services that may not be available through a traditional brokerage account, including enhanced liquidity, direct access to multiple markets, and sophisticated reporting tools. This centralization enables clients to execute larger trades more efficiently and obtain better pricing due to the aggregated volume.

In comparison, other options reflect more limited account functions or structures. An account that only trades in bonds focuses on a specific asset class and does not encompass the broader capabilities of a prime account. An account with minimal oversight suggests less management support, which contradicts the comprehensive nature of a prime account. Lastly, an account managed entirely by the customer implies a lack of institutional support or resources, which is contrary to the primary benefits of a prime account that typically includes extensive support from financial institutions.