In general: written document that authorizes a particular person to perform certain acts on behalf of the one signing the document. The document, which must be witnessed by a notary public or some other public officer, may bestow either full power of attorney or limited power of attorney. It becomes void upon the death of the signer.
Investments: full power of attorney might, for instance, allow assets to be moved from one brokerage or bank account to another. A limited power of attorney, on the other hand, would only permit transactions within an existing account. Abroker given a limited power of attorney, for instance, may buy and sell securities in an account but may not remove them. Such an account is called a discretionary account .

legal document authorizing another person to act as agent. The authority granted may be a full power, or it may be limited to certain acts, and it must be witnessed by a notary public. A person selling property may assign power of attorney if unable to attend the real estate closing.

legal instrument whereby an individual is given the right to act on behalf of another individual. For example, the right to buy and sell stock and to sign all brokerage papers relating to buying and selling in a stockholder's account is given by the stockholder to another individual through power of attorney. Or the right to decide which settlement option is to be used under a life insurance policy may be given by a policyowner to another individual. Experts often advise extreme care in assigning a power of attorney since that person becomes free to make financial decisions that can enhance-or ruin-an individual represented.

an instrument authorizing a person to act as the agent of the person granting it.

Example: Abel is going on a 6-month vacation to China. He wants to sell his house in Colorado for $175,000 but will not be present to sign the deed . He gives his trusted friend Baker the power of attorney so Baker may deed the property to a grantee while Abel is in China.