Definitions for sinking fund
sink·ing fund

Princeton's WordNetRate this definition:0.0 / 0 votes

1. sinking fundnoun

   a fund accumulated regularly in a separate account and used to redeem debt securities

WikipediaRate this definition:0.0 / 0 votes

1. Sinking fund

   A sinking fund is a fund established by an economic entity by setting aside revenue over a period of time to fund a future capital expense, or repayment of a long-term debt. In North America and elsewhere where it is common for public and private corporations to raise funds through the issue of bonds, the term is normally used in this context. However, in the United Kingdom and elsewhere where the issue of bonds (other than government bonds) is unusual, and where long-term leasehold tenancies are common, the term is only normally used in the context of replacement or renewal of capital assets, particularly the common parts of buildings. Borrowing money by issuing a bond is referred to as floating a bond. Sinking is its opposite, repaying debt or acquiring capital assets without debt.

ChatGPTRate this definition:0.0 / 0 votes

1. sinking fund

   A sinking fund is a financial strategy in which a company or an individual sets aside money on a regular basis in order to repay a debt or make a future purchase. This fund is often used by corporations to retire bonds or debentures or replace major capital expenses, like machinery or buildings, over time. By contributing to a sinking fund progressively, the party is able to reduce financial burden when the expense or debt becomes due.

WikidataRate this definition:0.0 / 0 votes

1. Sinking fund

   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 securities held against the entity. It helps keep the borrower liquid so it can repay the bondholder.

Etymology and OriginsRate this definition:0.0 / 0 votes

1. Sinking Fund

   One that provides for the annual reduction of a National Debt.

Matched Categories

1. • Fund

How to pronounce sinking fund?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say sinking fund in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of sinking fund in Chaldean Numerology is: 7

2. Pythagorean Numerology

   The numerical value of sinking fund in Pythagorean Numerology is: 2

Examples of sinking fund in a Sentence

1. Bill Gross:

   The reason nominal growth is critical is that it allows a country, company or individual to service their debts with increasing income, allocating a portion to interest expense and another portion to theoretical or practical principal repayment via a sinking fund, without the latter, a credit-based economy ultimately -devolves into Ponzi finance, and at some point implodes. Watch nominal GDP growth.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=sinking fund
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Sinking_Fund
3. ^ ChatGPT
   https://chat.openai.com
4. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=sinking fund
5. ^ Etymology and Origins
   https://www.gutenberg.org/cache/epub/54657/pg54657-images.html#:~:text=sinking fund