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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Prudent Investor Rule

Definition:

An outgrowth of the "prudent man rule." Under this standard, fiduciaries are now permitted to invest funds in the same manner that a "prudent investor" would invest. As a practical matter, this now requires investing in a diversified portfolio, which means that stocks as well as bonds can be considered suitable investments.

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