Purchase fund

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.
References in periodicals archive ?
The National Treatment Purchase Fund negotiates with the owners of facilities on the maximum prices they can charge residents for long-term care under the Fair Deal scheme.
He said buying government bonds through its asset purchase fund is likely to remain an effective easing tool, but the central bank also needs to take heed to avoid having its policy being perceived by others as monetizing government debts.
The purchase was made after funding from Cardiff council, the V&A Purchase Fund and the UK Antarctic Heritage Fund.
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.
A subsidiary, ADM Investments, has been established to acquire greenfield sites with a purchase fund of 20m [euro].
Proceeds from the sale will be deposited into the commonwealth's General Fund and the Agricultural Conservation Easement Purchase Fund as provided for in Act 23 of 2005.
The National Treatment Purchase Fund is one of the initiatives outlined in the
It occurs when a mutual fund or intermediary permits an investor to purchase fund shares after the day's net asset value is calculated, as though the purchase order were placed earlier in the day.
With the support of the Arts Council, National Arts Collection Fund and the V&A Purchase Fund, we have been able to purchase a number of limited-edition prints and 15 of those on display have never been shown before.
The institute, based at Birmingham University, bought the painting for pounds 297,000 with the aid of a pounds 200,000 grant from the Heritage Lottery Fund and grants of pounds 33,500 each from the V&A/Resource Purchase Fund and the National Art Collections Fund, the UK's largest independent art charity.
The bill requires the establishment of a soy biodiesel purchase fund that can only be used to buy soy biodiesel for Iowa Department of Transportation vehicles.
Egyptian Special Purchase Fund, William Francis Warden Fund, Florence E.