Related Words

Purchase Loan: A consumer loan taken to finance a purchase.

Purchase Agreement: Used in connection with project financing; an agreement to purchase a specific amount of project output per period.

Purchase And Sale: A method of securities distribution in which a firm purchases securities from the issuer for its own account at a stated price and then resells them, as contrasted with a best-efforts sale.

Purchase Discount: A reduction in the purchase price, allowed if payment is made within a specified period.

Purchase Accounting: Method of accounting for a merger that treats the acquirer as having purchased the assets and assumed the liabilities of the acquiree, which are then written up or down to their respective f . . . View Full Definition

Purchase Fund: Resembles a sinking fund, except that money is used to purchase bonds only if they are selling below their par value.

Purchase: Buy; be long; have an ownership position.

Prime Loan: A loan offered to borrowers with better credit history (sometimes called 'A' loans). Prime loans generally are priced lower and cost the borrower less.

Portfolio Loan: A loan originated and maintained by the lender and not sold in the secondary mortgage market.

Project Loan Certificate (PLC): A primary program of Ginnie Mae for securitizing FHA-insured and coinsured multifamily, hospital, and nursing home loans.