Prudent Man Rule

Legal Definition of Prudent Man Rule

Meaning of 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. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence, who is seeking a reasonable income and preservation of capital.(See: Legal list)

Related Entries of Prudent Man Rule in the Encyclopedia of Law Project

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Prudent Man Rule in Historical Law

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Legal Abbreviations and Acronyms

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