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Purchase Fund

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Purchase fund
Resembles a sinking fund, except that money is used to purchase bonds only if they are selling below their par value.

Purchase Fund
A sinking fund where a company sets money aside to repurchase its own securities if their prices fall below par. If the prices fall below par value, the purchase fund enables the company effectively to redeem its securities at a discount. The purchase fund reduces the risk that the company will be unable to redeem its bonds when they mature.


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CHESTER'S Grosvenor Museum is to be given funding from the Victoria and Albert Purchase Fund to commission a portrait of Cheshire author Alan Garner.
This is particularly relevant when you purchase funds or shares when they are at or near their peak, by which stage the gains have already occurred.
The National Treatment Purchase Fund figures showed the high number of youngsters among 1,186 patients awaiting treatment.
 
 
 
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