Meaning purchase fund
What does purchase fund mean? Here you find 4 meanings of the word purchase fund. You can also add a definition of purchase fund yourself
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purchase fundA borrower uses a purchase fund to buy back bonds in the secondary market if the price is advantageous, i.e. at par or below. This can save money on repayment of the bonds at par at maturity. Similar to a sinking fund, but not mandatory.
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purchase fundDefinition A type of fund that is only utilized by issuers to purchase securities when they are trading below the nominal dollar amount assigned to the security by the issuer.
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purchase fundA fund set up by a company to retire, through purchases in the market, a specified amount of its outstanding preferred shares or debt. Purchases are made at or below a stipulated price. Push-out
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purchase fundResembles a sinking fund, except that money is used to purchase bonds only if they are selling below their par value.
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