Definitions for "Prudent Man Rule"
The fundamental principle for professional money management, stated by Judge...
A common law standard applied by the Courts 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. He is to observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of the capital to be invested'. The Prudent Man Rule is tending to be replaced by the notion of the `Prudent Expert'.
a fundamental principle for professional money management which serves as a basis for the Prudent Investor Act. The principle is based on a statement by Judge Samuel Putnum in 1830: "Those with the responsibility to invest money for others should act with prudence, discretion, intelligence and regard for the safety of capital as well as income."
Keywords:  pssg