prudent man rule definition

prudent man rule

Basic principle for investment decisions by institutional investors and professional money managers. Also called American rule, it originates from the 1830 ruling of the US judge Samuel Putnum that "Those with responsibility to invest money for others should act with prudence, discretion, intelligence, and regard for the safety of capital as well as income.” See also reasonable person.

prudent man rule is in the Corporate, Commercial, & General Law subject.

prudent man rule appears in the definitions of the following terms: American rule and reasonable person

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