"Prudent Person Rule" Definition
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 Glossary   >   P   >   "Prudent Person Rule" Definition   

        Prudent Person Rule

A legal maxim that restricts the discretion in a client"s account to investments only in those securities that a prudent person seeking reasonable income and preservation of capital might buy for his or her own investment.

Prudent Person Rule


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Prudent Person Rule - A legal maxim that restricts the discretion in a client"s account to investments only in those securities that a prudent person seeking reasonable income and preservation of capital might buy for his or her own investment.


Prudent Person Rule : a legal maxim that restricts the discretion in a client"s account to investments only in those securities that a prudent person seeking reasonable income and preservation of capital might buy for his or her own investment.