sinking fund

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sinking fund

The Columbia Encyclopedia, Sixth Edition | 2008 | The Columbia Encyclopedia, Sixth Edition. Copyright 2008 Columbia University Press. (Hide copyright information) Copyright

sinking fund sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are to be paid off. Usually the fund is administered by a trustee. See amortization .

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sinking fund

The Oxford Pocket Dictionary of Current English | 2009 | © The Oxford Pocket Dictionary of Current English 2009, originally published by Oxford University Press 2009. (Hide copyright information) Copyright

sink·ing fund • n. a fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset.

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Sinking fund prepurchases and the designation option. (Market Microstructure and Corporate Finance Special Issue)
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