Prudent Man Rule |
| An investment standard. In some US states, the law requires that a fiduciary, such as a trustee, may invest the funds 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. |
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