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Webster's New World Finance and Investment Dictionary » prudent-man rule
prudent-man rule
prudent-man rule definition - finance
A
legal securities standard that asks the question “What would a prudent man do?”
in order to determine whether an action was reasonable or whether it violated
fiduciary duties. The legal standard originated in 1830 when Judge Samuel
Putnum wrote, “Those with responsibility to invest money for others should act
with prudence, discretion, intelligence and regard for the safety of capital as
well as income.”
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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