Monday, December 1, 2008
Today's Fly Or Die Commerce Report: The Prudent Man Rule
According to Black's Law Dictionary, The Prudent Man Rule is: "An investment standard. In some states, the law requires that a fiduciary, such as a trustee, 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, the trustee may invest in a security if it is one which a prudent man of discretion and intelligence, who is seeking a reasonable income and preservation of capital, would buy. [There is] a federal 'prudent man rule' which governs investment of pension funds."