A fund into which a company sets aside money over time, in order to retire its preferred stock, bonds or debentures. A fund into which a company sets aside money over time, in order to retire its preferred stock, bonds or debentures. In the case of bonds, incremental payments into the sinking fund can soften the financial impact at maturity. Investors prefer bonds and debentures backed by sinking funds because there is less risk of a default.
Related information about sinking fund:
- Sinking fund - Wikipedia, the free encyclopedia
A sinking fund is a fund established by a government agency or business for the purpose of reducing debt by repaying or purchasing outstanding loans and ...
- Sinking Fund Definition | Investopedia
A means of repaying funds that were borrowed through a bond issue. The issuer makes periodic payments to a trustee who retires part of the issue by ...
- I have discovered that a bond I am interested in has a sinking fund ...
Mar 7, 2007 ... First, understand that a sinking fund provision is really just a pool of money set aside by a corporation to help repay a bond issue. Typically ...
- sinking fund - Financial Dictionary - The Free Dictionary
A fund to which money is added on a regular basis that is used to ensure investor confidence that promised payments will be made and that is used to redeem ...
- What is sinking fund? definition and meaning
Definition of sinking fund: A fund into which a company sets aside money over time, in order to retire its preferred stock, bonds or debentures. A fund into which a ...
- Sinking fund - Merriam-Webster Online
a fund set up and accumulated by usually regular deposits for paying off the principal of a debt when it falls due. See sinking fund defined for kids » ...
- What is a Sinking Fund and How Can Sinking Funds Help Your ...
Feb 9, 2010 ... Wondering what is a sinking fund? A sinking fund is a great way to take the worry out of budgeting utilities, and big-ticket items. The sinking ...
- What is a bond sinking fund? | AccountingCoach.com Q&A
A bond sinking fund is a restricted asset of a corporation that was required to set aside money for redeeming or buying back some of its bonds payable.