Prudent-man rule

Definition:

A rule set forth in the Uniform Prudent Investor Act that states that a fiduciary trustee has the legal obligation to invest and manage trust assets as a prudent person would, taking into account, among other factors, general economic conditions, risk, and liquidity requirements in an attempt to create a portfolio or investment strategy with objectives suited to the trust.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Force Majeure

Events outside the control of the parties. These events are acts of man, nature, governments and regulators, or impersonal events. Contract performance is forgiven or extended by the period of force... Read More

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