In stockbroking, what is meant by "client money"?

"Client money" refers specifically to the funds deposited by clients with a stockbroker that must be safeguarded. This concept is crucial in the regulation of financial services to ensure that client funds are managed with a high level of protection and integrity.

When clients deposit money with a stockbroker, they expect that their funds will be held securely and used only for the purposes specified in their agreements, such as facilitating trading on their behalf. Regulations surrounding client money are strict, requiring that stockbrokers separate client funds from their own operational funds, which helps to protect clients in the event of the stockbroker's insolvency or mismanagement.

The other choices do not reflect the correct definition of client money. For instance, the idea that stockbrokers can use funds as they like contradicts the protective measures meant to secure client assets. Similarly, investments made on behalf of clients involve the use of the clients' funds but are not the definition of client money itself. Lastly, loans taken out by clients for trading do not represent money held by the stockbroker, but rather financial arrangements that clients enter into independently of the broker's responsibilities for their funds. Thus, the proper understanding of client money is rooted in its definition as the protected funds deposited by clients.