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 ?
Members of the Dumfries Historic Buildings Trust (DHBT) were stunned when a cheque for PS5,000 towards the mills' purchase fund dropped through the letterbox.
Meanwhile, over 500,800 people were waiting to be treated and seen at outpatient figures from the National Treatment Purchase Fund confirmed.
Major organization : NATIONAL TREATMENT PURCHASE FUND
Minister Harris seems to think the National Treatment Purchase Fund is the solution to this deepening problem.
It was purchased by the Bodleian with grants from the V&A Purchase Fund and the friends of the library.
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 asset purchase fund has been its main policy tool since its introduction in October 2010.
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.
I think a city of this size ought to have a substantial purchase fund each year .
A subsidiary, ADM Investments, has been established to acquire greenfield sites with a purchase fund of 20m [euro].
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.