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Preferred term

prudent investor rule  

Definition

  • The Prudent Investor Rule generally provides that a fiduciary shall invest and manage property held in a trust as a prudent investor would, by considering the purposes, terms, and other circumstances of the trust and by pursuing an overall investment strategy reasonably suited to the trust. A person who holds property for the benefit of another is said to hold that property in trust and is known as a fiduciary. [Source: Encyclopedia of Business Ethics and Society; Prudent Investor Rule]

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URI

https://concepts.sagepub.com/social-science/concept/prudent_investor_rule

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