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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. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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