A 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.
Purchase fund
Definition: [crh] Resembles a sinking fund, except that money is used to purchase bonds only if they Definition: are selling below their par value.
Purchase fund
Resembles a sinking fund except that money is used only to purchase bonds if they are selling
below their par value.
Purchase method ...
Purchase Fund. A method whereby the company purchases a stated number of shares each year, but only below par value. This helps to support the market price of the shares.
Purchase Fund
A fund set up by a company to retire through purchases in the market a specified amount of its outstanding preferred shares or debt if purchases can be made at or below a stipulated price. See also sinking fund.
Pure Insurance ...
Purchase Fund A 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.
purchase fund
provision in some preferred stock contracts and bond indentures requiring the issuer to use its best efforts to purchase a specified number of shares or bonds annually at a price not to exceed par value.
An insurance company's separate account is established to hold the premiums you use to purchase funds included in variable annuity contracts the company offers.
The day on which the purchasers solicitor allocates the purchase funds accordingly, they will pay the purchase price to the vendors solicitor and pay other associated costs like stamp duty.
Used to decrease the money supply when bonds are sold and the purchase funds paid the Fed are taken out of circulation or increase the money supply when newly created cash is used to buy securities.
Project Completion Restriction
Purchase Fund
Trust Indenture Act of 1939
Trustee ...
A method of distribution whereby funds sell their shares directly to the public without the intervention of a salesperson. Investors purchase fund shares through the mail or by telephone in response to advertising or direct solicitation.
A charge assessed by an intermediary, such as a broker-dealer or a bank, for assisting in the sale or purchase of a security.
Purchase fund ...
of ownership in a company, an Exchange Fund is comprised of assets that can include stocks, bonds, and commodities. They are traded by average consumer investors using retail brokers on a secondary market and by large corporations that purchase funds ...
 See also: Sinking Fund, Banks, Expense, Repurchase agreement, Values
  
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