Prudent man rule - An investment standard. In some US 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 man of discretion and intelligence, who is seeking a reasonable income and preservation of capital.
Prudent man rule : an investment standard. in some us 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 man of discretion and intelligence, who is seeking a reasonable income and preservation of capital.
Prudent man rule