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Simple English definitions for legal terms

prudent person rule

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A quick definition of prudent person rule:

The prudent person rule is a guideline that says a person in charge of investing money for someone else can only invest in things that a normal person would invest in. They have to think about how much money they might make and how safe the investment is. This rule comes from a court case called Harvard College v. Amory.

A more thorough explanation:

The prudent-person rule, also known as the prudent investor rule, is a legal principle that requires a fiduciary to invest in securities that a reasonable person would purchase. This is evaluated based on the probable income and probable safety of the investment.

For example, if a financial advisor is managing a client's retirement fund, they must invest in securities that are likely to provide a reasonable return on investment while also minimizing the risk of losing the client's money. The advisor cannot invest in high-risk securities that are unlikely to provide a return or that could result in significant losses.

The prudent-person rule is based on the precedent set in the case of Harvard College v. Amory, which was decided in 1830. In this case, the court ruled that a trustee must act with the same care and prudence that a prudent person would use in managing their own affairs.

Prudent Investor Rule | Pseudonym name

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1a2b3c4d26z
11:15
In this analogy is the LSAT the NFL combine
JumpySubsequentDolphin
11:16
I told my family I won’t get any decisions until 2025 so they wouldn’t bombard me hahah
no i think there should be a Law School combine with all new drills except there is still the 40 yard dash
and a sub 4.5 gets you into any t14
LSAT can be one of the drills
letsseehowitgoesnow
11:17
so washu only called one person
So all the D1 athletes will get into a T-14. What else is new?
@TheAdoptedOne: that is called "Dean Poker Night" lol
@ClockworkBlue: I feel like most people could train for the 40 for the same amount of time as they do the LSAT and get close to sub 5 which would be equivalent to a 167+
this is like the schizophrenic posts JJK tik tok be putting out
powerscaling Law School deans up next
11:19
Election Day election day
Write in Dean Z vote
11:20
Saw a guy that wrote in Biden and he said no retirement for you buddy
1a2b3c4d26z
11:20
@ClockworkBlue: god I hope that's true
if the country was run the same as Mich Law it would be a better place
Imagine if election night was run by an adcom? Like, "yep, we could get the results Friday, or June 2025."
imagine if it was like Berkley applications
1a2b3c4d26z
11:22
Election status: Complete
1a2b3c4d26z
11:22
For months
triplethread
11:23
erection day
soapy
11:23
Shoutout to Robinhood's election bet not resolving until January
triplethread
11:23
is anyone else like certain that trump will win
ambitiouslizard
11:23
he aint winning
triplethread
11:23
i like being a pessimist
ambitiouslizard
11:24
he lost his re-election, why would he win this one?
1a2b3c4d26z
11:25
I have no idea why people have so much beef w berkeley's app
I've been reading a bit about "herding," which is this idea that pollsters are making the race look tied so they look right no matter who wins.
1a2b3c4d26z
11:26
Like... it's a more involved app but you don't have to do it? They're clearly trying to have some self-selection go on
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