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Prudent man rule |
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Prudent man ruleAn investment standard. In some US states, the law requires that a fiduciary, such as a trustee, may invest the fund's money only in a list of securities designated by the state the so-called legal list. In other states, the trustee may invest in a security if it is one that would be bought by a prudent man of discretion and intelligence, who is seeking a reasonable income and preservation of capital.Prudent man ruleA common law standard against which those investing the money of others fiduciaries) are judged.Prudent man rule Similar MatchesPrudential supervisionPrudential supervisionA term sometimes used to describe the supervision/regulation of institutions such as banks, building societies and friendly societies where the supervising authority seeks to ensure that the protection of depositors is maintained by the institution in question being financially sound. |
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