This rule is intended to protect investors using the services of an investment advisor from shady, risky, or otherwise poor investments, such as penny stocks.
Investment dictionary. Academic. 2012.
prudent person rule — The requirement that a trustee, a city or county treasurer, an investment manager of pension funds, or any fiduciary (a trusted agent) must invest funds with discretion, care, and intelligence. Investments that are generally within the prudent… … Law dictionary
prudent man rule — n: a rule giving discretion to a fiduciary and esp. a trustee to manage another s affairs and invest another s money with such skill and care as a person of ordinary prudence and intelligence would use in managing his or her own affairs or… … Law dictionary
prudent man rule — /ˌpru:d(ə)nt mæn ru:l/ noun a rule that trustees who make financial decisions on behalf of other people should act carefully (as a normal prudent person would) … Dictionary of banking and finance
Prudent Expert Act — A measure contained in section 404(a)(1)(B) of the Employee Retirement Income Security Act (ERISA) that requires the fiduciary of a defined contribution retirement plan to use care, skill, prudence and diligence , and to act in the same way that… … Investment dictionary
Business judgment rule — The business judgment rule is an American case law derived concept in Corporations law whereby the directors of a corporation . . . are clothed with [the] presumption, which the law accords to them, of being [motivated] in their conduct by a bona … Wikipedia
safe investment rule — A rule applied in the computation of the present worth of a decedent s expected future earnings. Under the so called safe investment rule, the jury, in determining the present value of the decedent s expected future earnings, should use that rate … Ballentine's law dictionary
Information security — Components: or qualities, i.e., Confidentiality, Integrity and Availability (CIA). Information Systems are decomposed in three main portions, hardware, software and communications with the purpose to identify and apply information security… … Wikipedia
Dummy Director — A person on a company s board of directors who votes and acts on the wishes of a non board member. Dummy directors are most commonly used when a private company is in the process of going public, and it needs to establish a board of directors… … Investment dictionary
Pensions (IORP) Directive — England, Scotland, Wales directive 2003/41/EC of the European Parliament and of the Council of the European Union dated 3 June 2003 on the activities and supervision of institutions for occupational retirement provision. It is a first step to… … Law dictionary
Pensions Directive — England, Scotland, Wales directive 2003/41/EC of the European Parliament and of the Council of the European Union dated 3 June 2003 on the activities and supervision of institutions for occupational retirement provision. It is a first step to… … Law dictionary
