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Dual purpose fund |
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Dual purpose fundA closed-end fund consisting of two classes of shares. The two classes are preferred shares, on which shareholders receive all the dividends and interest from the portfolio, and common shares, on which shareholders receive all the capital gains.Dual purpose fundIn the US, a closed end fund with a limited life and two main classes of shares. Holders of preferred shares receive all the income. Common shareholders receive all the fund's assets at expiry after preferred shareholders have been paid their fixed redemption price. Similar to a split capital investment trust in the UK.Similar MatchesPurpose creditPurpose creditCredit used for the purpose of buying, carrying or trading in securities. Public purpose bondPublic purpose bondA specific type of municipal bond used to finance public projects such as roads or government buildings. Interest on municipal bonds is federal income tax-free. Essential purpose (or function) bondEssential purpose (or function) bondSee: Public purpose bond Nonpurpose loanNonpurpose loanA loan with securities pledged as collateral, but which is not to be used in securities trading or transactions. Purpose statementPurpose statementA form filed by a borrower that describes the use of a loan backed by securities, and guarantees that the funds lent will not be used illegally to buy securities against Federal Reserve regulations. Further SuggestionsPrivate purpose bondPurpose loan |
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