Investopedia

Continue to Site »

Fiduciary Negligence

Filed Under » ,
Dictionary Says

Definition of 'Fiduciary Negligence'

A professional malpractice in which a person fails to honor his or her fiduciary obligations and responsibilities. Fiduciary negligence occurs when a fiduciary fails to act on breaches of fiduciary duty when his or her actions could have prevented the infractions.
Investopedia Says

Investopedia explains 'Fiduciary Negligence'

Suppose that a company's shareholders entrust their funds with the firm's management. If the company's employees are embezzling money or expensing funds on lavish dinners and gifts and the chief financial officer fails to check the financial accounts, allowing such infractions to go unnoticed, that officer would be considered negligent and held accountable even if he or she did not benefit from these actions.

Articles Of Interest

  1.

    Warning Signs Of A Company In Trouble

    Don't let your clients go down with ship! Learn how to escape sinking with these tips.

  2. Defining Illegal Insider Trading

    The better you understand why insider trading can be criminal, the better you'll understand how the market works.

  3. Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.

  4. Find The Right Financial Advisor

    Learn how to weed out those who are just out to make a quick buck.

  5. Morningstar's Stewardship Grade Scores Big

    Morningstar's service gives investors an idea how well fund companies are safeguarding their interests.

  6. Fiduciary Designations Enhance Planning Career

    Attaining the AIF or AIFA could help both you and your clients enjoy a comfortable retirement.

  7. How To Safeguard Your Tax Returns From Identity Theft

    Identity thieves love tax season. In 2012, there were 13 million victims of identity theft. As easy as it is for thieves to steal your information, there are also simple measures you can take ...

  8. How To Report A Tax Cheat

    If you report a tax evader to the IRS, you could be eligible for a reward.

  9. How To Identify A Micro-Cap Scam

    Discover how to distinguish a real investment opportunity from a fraudulent one.

  10. The Underground Internet Economy Of Cybercrime

    Cybercrime represents an underground economy worth $114 billion. Let's take a look at how this economy operates.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center