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 someone "familiar with such matters" would act. The "familiar with such matters" language has been interpreted to mean "expert". This language creates an important distinction from the earlier prudent person guideline, in that it holds fiduciaries to a stricter standard.
Also called the "prudent expert rule" or "prudent expert standard".
POPULAR TERMS
Netting
Settling mutual obligations at the net value of a contract as opposed to its gross dollar value.
Lemming
An investor who follows the crowd in investing without doing any research on his/her investments. Usually, lemming results to significant losses. T ...
Transaction Deposit
Bank deposit that can be immediately withdrawn, transferred, or otherwise transacted by the depositor. Banks are required to maintain reserves on h ...
Value Fund
Value Fund refers to a stock mutual fund that holds stocks, which are believed to be undervalued in price but are likely to be capable of paying di ...
Market Order
Most common way of carrying orders; an instruction or order from a client, via broker or brokerage service, to immediately purchase or sell an inve ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Ethical Investing: Looking Into Ethical Investments
For studying socially responsible investments, the key word is ethics, of course.
View every corporate webs ...
Digesting Financial Statements: Pension Plans
Deducing on the topic we previously discussed, this tutorial now puts the spotlight on the pension fund. It is a distinct long-term obligation for ...
A Primer on Retirement Planning
Every person dreams of enjoying their lives once they reach their golden years. Most people desire living in a house with a beach front view or a m ...
Digesting Financial Statements: Long-Lasting Assets
Long-lived assets, also known as non-current assets, is any asset a company expects to keep for at least one year. Such assets are expected to boos ...
A Guide to Income Tax: Overlooked Credits and Cuts
The US tax code changes from time to time, and majority of taxpayers cannot name at least three of the most common deductible expenditures. On that ...
ECONOMIC CALENDAR
Time | Country | Indices | Period |
---|---|---|---|
05:00 | Credit Card Spending | Mar | |
14:30 | Industrial Product Price Index | Mar | |
14:30 | New Housing Price Index | Mar | |
14:30 | Raw Materials Price Index | Mar | |
16:00 | Consumer Confidence | Apr | |
02:30 | PMI Manufacturing | Apr | |
02:30 | Tertiary Industry Index | Apr | |
02:30 | PMI Composite | Apr | |
08:00 | Public Sector Net Borrowing | Mar |