prudent man rule

noun
: a rule that gives a large measure of discretion to trustees in selecting investments for trust funds where the trust agreement calls for purchase of legal investments and that allows stocks to be purchased as well as bonds though in some states only up to a specified limit

Useful english dictionary. 2012.

Look at other dictionaries:

  • prudent man rule — n: a rule giving discretion to a fiduciary and esp. a trustee to manage another s affairs and invest another s money with such skill and care as a person of ordinary prudence and intelligence would use in managing his or her own affairs or… …   Law dictionary

  • Prudent man rule — The Prudent Man Rule is based on common law stemming from the 1830 Massachusetts court decision Harvard College v. Armory, 9 Pick. (26 Mass.) 446, 461 (1830). The Prudent Man Rule directs trustees to observe how men of prudence, discretion and… …   Wikipedia

  • Prudent Man Rule — An investment standard. In some states, the law requires that a fiduciary, such as a trustee for pension funds, may invest the trust s or fund s money only in a list of securities designated by the state the so called legal list. In other states …   Black's law dictionary

  • prudent-man rule — A US criterion for managing investments, especially in relation to pensions, that is designed to avoid reckless speculation. It requires that a fiduciary behave as a notional prudent man or woman would when making an investment …   Big dictionary of business and management

  • prudent-man rule —  U.S. legal standard for the actions of someone charged with investing funds in trust for others. The administrator of the funds is expected to ask, “Would a prudent man or woman make this investment?” …   American business jargon

  • prudent man rule — /ˌpru:d(ə)nt mæn ru:l/ noun a rule that trustees who make financial decisions on behalf of other people should act carefully (as a normal prudent person would) …   Dictionary of banking and finance

  • prudent man rule — noun A standard for the duty of a fiduciary with responsibility over investments …   Wiktionary

  • prudent-man rule — A common law standard against which those investing the money of others fiduciaries are judged. Bloomberg Financial Dictionary …   Financial and business terms

  • Prudent-Person Rule — A legal maxim restricting the discretion in a client s account to investments that a prudent person seeking reasonable income and preservation of capital might buy for his or her own portfolio. Also called the prudent man rule . This rule is… …   Investment dictionary

  • prudent operator rule — The rule that a stipulation in an oil and gas lease on a royalty basis that development shall be at the discretion of the lessee does not leave development to the uncontrolled will of the lessee, he being required to do by way of development that …   Ballentine's law dictionary

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