Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,893,965,814 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Prudent Man Rule
(redirected from American Rule)

   Also found in: Legal, Wikipedia 0.01 sec.
Prudent Man Rule
A legal rule requiring investment advisers to only make investments for their clients' discretionary accounts that a "prudent person" would make. This means that investment advisers operating discretionary accounts are not allowed to make investments they believe will lose money for the client. It does not require that the investment adviser always make correct decisions; it merely requires him/her to make decisions that will be generally accepted as sound for someone of average intelligence. The rule has its origins in an 1830 court decision in Massachusetts, stating that trustees must manage the affairs of others as if they were managing "their own affairs." See also: Suitability rules, Twisting.

prudent man rule
A federal and state regulation requiring trustees and portfolio managers to make financial decisions in the manner of a prudent man, that is, with intelligence and discretion. The prudent man rule requires care in the selection of investments but does not limit investment alternatives. See also investment-grade, legal list.

Prudent man rule. The prudent man rule is the basic standard a fiduciary, who is responsible for other people's money, must meet.

It mandates acting as a thoughtful and careful person would, given a particular set of circumstances. A trustee, for example, observes the prudent man rule by preserving a trust's assets for its beneficiaries.

The prudent man rule has sometimes been described as a defensive approach to money management, putting greater emphasis on preservation than on growth. The newer prudent investor rule differs by putting greater emphasis on achieving a reasonable rate of return and by delegating decision-making to investment professionals.



Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
In 1933 he began his efforts on behalf of baseball by convincing 18 teams in the Liverpool area then playing under English baseball's code to adopt the American rules.
Another advantage enjoyed by domestic funds, at least in the eyes of many Chinese, is that they don't need to hew to American rules.
The text begins in the 18th century when the Spanish began colonizing the area and follows Tejano culture and into the era of American rule following Texas' war for independence from Mexico in 1836.
 
 
American Rock Art Research Association
American rock brake
American Rock Crawling Association
American Rock Mechanics Association
American Rocket Society
American Rocket Society
American Roentgen Ray Society
American Roller Derby League
American Romagnola Association
American romanticism
American romanticism
American Romantism
American Romantism
American Romney Breeders Association
American Roof Cleaners Association
American Root Beer Tasters Association
American Roots Music Education
American Roots Music Festival
American Rose Society
American Rosie the Riveter Association
American Rotary Tools Company
American Rottweiler Verein
American Royal Association Center Complex
American Royal Barbecue
American Royal Waterslager Club
American Rubber Technologies
American Rugby News
American Rule
American run
American Rundbogenstil
American Running and Fitness Association
American Running Association
American Russian Law Institute
American Russian Theatre Ensemble Laboratory
American sable
American Saddle Bred
American saddle horse
American saddle horse
American saddle horse
American Saddle Horses
American Saddle Horses
American Saddlebred
American Saddlebred
American Saddlebred
American Saddlebred Association of Great Britain
American Saddlebred Association of the Carolinas
American Saddlebred Horse
American Saddlebred Horse Association of Australia
American Saddlebred Horse Association of Georgia
American Saddlebred Horse Association of Ohio
American Saddlebred Horse Association, Inc.
American Safari Cruises
American Safe Climbing Association
American Safety & Health Institute
American Safety Razor
American Safety Reinsurance Ltd.
American Sail Training Association
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.