Prudent Man Rule
A common law standard applied to the investment of trust funds. Briefly stated: "All that can be required of a trustee in the investment of trust funds is that he conduct himself faithfully and exercise sound discretion.
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Prudent Man Rule:
A rule originally stated in 1830 by the Supreme Judicial Court of Massachusetts in Harvard College v. Amory [ 9 Pick.
PRUDENT MAN RULE " An investment standard. In some 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).
Prudent man rule
The prudent man rule is the basic standard a fiduciary, who is responsible for other people's money, must meet. It mandates acting as a thoughtful and careful person would, given a particular set of circumstances.
Prudent Man Rule: A standard by which a fiduciary is required to invest the funds under his care in some states.
Prudent Man Rule - Rule established by the Securities Act of 1933 which makes financial advisors, stockbrokers and other fiduciaries responsible for acting in a prudent or responsible manner in the affairs of their clients.
Prudent Man Rule
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See: Legal List; Prudent Man Rule
FIFO (First In, First Out)
Method of accounting for the purchase and sale of securities for tax purposes whereby the first security purchased is assumed to be the first security sold.
See: Legal List; Prudent Man Rule; Rate Of Return; Tax Deferred
Performance Fund
A mutual fund whose goal is to achieve maximum growth of capital--sometimes called "aggressive growth funds".
Investment grade Designating a bond suitable for purchase by institutions under the prudent man rule. Typically BBB from S&P or Baa from Moody's.
Prudent Expert Act The revised version of the prudent man rule required by ERISA to guide managers of pension and profit sharing portfolios. Prudent Investor Act The primary rule for which professional money management, as stated by Judge...
Other states simply use the Prudent Man Rule which requires that fiduciaries act as a prudent man or woman would with regard to how they invest on behalf of their beneficiary.
individual or institution responsible for holding or administering property owned by another. An executor, guardian, trustee, and administrator are examples of a fiduciary. The Prudent Man Rule is one way states ensure that fiduciaries invest ...
The proxy can also take the form of a w...(Read more)
Prudent Man Rule
An investment standard. In some US states, the law requires that a fiduciary, such as a trustee, may invest the funds money only in a list o...(Read more) ...
prudent man rule A rule for those responsible for investing others' money: the person must use discretion and intelligence, seek reasonable income, preserve capital, and avoid unreasonably speculative investments.
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