Meaning of sinking fund
WebThe sinking fund bonds are defined as the bonds wherein the bond issuer specifically keeps a set defined amount to repay the holders of the bonds on the date of maturity or predefined dates. It is a bond made by the issuer to be catered as collateral in case the issuer defaults on its payments to the holders of the bonds at a defined future date. Websinking fund meaning: 1. money saved by a company or government for the payment of future debts 2. money saved by a…. Learn more.
Meaning of sinking fund
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Websinking fund. n. (Banking & Finance) a fund accumulated out of a business enterprise's earnings or a government's revenue and invested to repay a long-term debt or meet a … WebThe meaning of FUND is a sum of money or other resources whose principal or interest is set apart for a specific objective. How to use fund in a sentence. ... — sinking fund: a fund set up and accumulated by regular deposits for paying off the principal on a debt or for other specified purposes (as self-insurance)
WebApr 28, 2024 · The term sinking fund, as it relates to property, is a reserve fund set up by the owners within a development, usually units of apartments or condominiums. It is essentially a savings account, set aside for a rainy day. WebSinking funds also require planning ahead. In the previous example, saving $100 a month starting in July might mean digging for change in the car seats, but if you had started in January, it would ...
WebAug 14, 2016 · By definition, a sinking fund is a long-term savings account which ensures that there is capital set aside to cover one-off expenses in the future. Having a sinking … WebA sinking fund is a financial strategy used by individuals, businesses, and governments to set aside money for future expenses. In simple terms, a sinking fund is a fund that is set up to accumulate a sum of money over some time to repay a debt or to replace an asset.
WebOct 1, 2024 · In most cases, the sinking fund requires the issuer to actually retire a portion of the debt on a prearranged schedule so that all of the debt is retired by the maturity date. How this occurs depends on what is in the sinking fund account. Usually, sinking funds can either be in cash or in the form of other bonds or preferred stock.
Websinking fund, fund accumulated and set aside by a corporation or government agency for the purpose of periodically redeeming bonds, debentures, and preferred stocks. The fund is accumulated from earnings, and payments into the fund may be based on either a fixed percentage of the outstanding debt or a fixed percentage of profits. the mall at green hills nashville tn 37215WebA bond sinking fund is a corporation's noncurrent asset that is restricted for the purpose of redeeming or buying back its bonds payable. Bonds that require a bond sinking fund will mean less risk for the bondholders. The corporation is required to make regular deposits into the bond sinking fund, which is likely managed by an independent trustee. the mall athens village cinemaWebApr 10, 2024 · A sinking fund is a financial tool you can use to save money over time for a specific expense, such as a planned vacation or a home repair. What is A Sinking Fund? … tidewe 32 mp. trail cameraWebA sinking fund is a portion of your savings that you allocate or earmark for a specific occasion, event, or future expense. Sinking funds are commonly used for things like emergency expenses, vacations, large purchases, a … the mall at green hills nashville tnWebSinking Fund The sinking fund bonds are defined as the bonds wherein the bond issuer specifically keeps a set defined amount to repay the holders of the bonds on the date of maturity or predefined dates. It is basically a bond made by the issuer to be catered as collateral if in case the issuer defaults on its payments to the holders of the ... the mall at green hills tnWebMeaning of sinking fund in English. sinking fund. noun [ C ] finance & economics specialized uk / ˈsɪŋ.kɪŋ ˌfʌnd / us / ˈsɪŋ.kɪŋ ˌfʌnd /. money saved by a company or government for the … the mall at king of prussiaWebsinking fund. Money set aside in a special account to which regular contributions are made by way of additional money and/or interest on the money,with the plans that by a specified date the fund will be sufficient for a particular purpose.Prospective homeowners may set up a sinking fund for a house down payment,and companies usually establish ... the mall athens μαγαζια