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Simple English definitions for legal terms
smart money
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A quick definition of smart money:
Term: Smart Money
Definition: Smart money refers to funds held by experienced and knowledgeable investors who are skilled at reducing risks and increasing profits. These investors are often large and sophisticated, and their investment decisions are highly respected in the financial world. The term can also refer to additional damages awarded in a lawsuit beyond the actual damages, meant to punish the defendant for their actions.
A more thorough explanation:
Definition: Smart money refers to funds held by experienced and knowledgeable investors who are capable of minimizing risks and maximizing profits.
Example 1: The smart money has now left this market.
Example 2: Although the jury awarded only $7,000 in actual damages, it also awarded $500,000 in smart money.
Explanation: In example 1, the term "smart money" refers to the funds held by sophisticated and large investors who have withdrawn their investments from a particular market. This indicates that these investors have identified potential risks and have taken steps to protect their investments. In example 2, the term "smart money" refers to the additional amount awarded by the jury as punitive damages. This indicates that the jury recognized the defendant's actions as particularly harmful and awarded additional compensation to deter similar behavior in the future.