external funds

External funds

Funds originating from a source outside the corporation to increase cash flow and to aid in expansion efforts, e.g., bank loan or bond offering.

External Fund

1. A mutual fund that invests predominantly or exclusively in securities issued in foreign countries. An external fund does not necessarily concentrate on any single country, but it does not invest in securities from the country in which it operates. An external fund should not be confused with a global fund, which invests in both domestic and foreign securities. An external fund is also called an international fund.

2. Funding that a company raises from any source other than itself. Two common types of external funds are bond and stock issues. A company seeks external funds when it wishes to expand its operations or other activities, but lacks the cash flow to do it independently. Providers of external funds almost always expect to receive something in return; for example, bondholders expect interest and principle repayment, while stockholders expect to receive a portion of the ownership of the company.

external funds

The funds that are raised from sources outside a firm. The monies that are received from the sale of stock and bonds are external funds. Firms seek external funds when they are unable to finance expenditures with money generated from operations. External funds are particularly important for a young, fast-growing company that has capital requirements that greatly outstrip its ability to generate funds internally. Compare internal funds.
References in periodicals archive ?
revisions to objectives, legislated annual reporting and audit requirements, annual statements to beneficiaries and information statements to new beneficiaries; clarification that there is no presumption that funds for a person under a legal disability are to be administered by Funds in Court rather than another funds administrator; enabling the Court to have some, or all, of the funds it holds managed by or vested in one or more external funds managers or custodians; setting out procedures for beneficiaries to apply to the Court to transfer their funds to an external funds administrator; and providing for a complaints handling procedure for services provided by Funds in Court, along with a requirement to report annually on complaints.
To illustrate this point, Elliott and Shewchuk reviewed the counseling psychology literature to explore the percentages of counseling and applied psychology studies supported by external funds between 1994 and 1996.
The other, external equities department will be headed by Obeid Al-Suwaidi, who was previously director of external funds for the Far East.
Earlier, ADIA had four departments, all external funds equities on a geographical basis -- Europe, North America, Far East and emerging markets.
The external equities department will be headed by Obeid Al Suwaidi, who was previously director of external funds for the Far East.
But culture bosses are negotiating with Waygood over tens of thousands of pounds of external funds which were released to the capital project but which it is holding.
The Private Equities Department is responsible for investing in global private equity funds and assessing selected opportunities to co-invest alongside external funds.
The independent MP Wa'el Abdul Latif accused the dominating blocs and parties of making use of the "public as well as the external funds to cover the expenses of the electoral propaganda.
None of this would have occurred, regardless of it being evidence-based or not, without receipt of external funds.
Contract notice: Analysis on the efficiency of absorption of external funds by local governments and their entities in lower silesia in the years 2007-2013.