Reasonable investor
Term · Law · MLC-T-LAW-004131
A hypothetical individual who makes investment decisions based on careful consideration of all available information, acting with prudence and common sense. This standard is used in securities law to assess materiality and determine whether a disclosure would influence an investor's decision. The reasonable investor is not overly cautious or speculative, but rather exercises sound judgment.
| Identifier | MLC-T-LAW-004131 |
|---|---|
| Field | Law |
Record as JSON
{
"id": "MLC-T-LAW-004131",
"term": "Reasonable investor",
"field": "Law",
"definition": "A hypothetical individual who makes investment decisions based on careful consideration of all available information, acting with prudence and common sense. This standard is used in securities law to assess materiality and determine whether a disclosure would influence an investor's decision. The reasonable investor is not overly cautious or speculative, but rather exercises sound judgment.",
"url": "https://mlchart.com/terminology/law/reasonable-investor/"
}
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