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Purchase

• To buy, to be long, to have an ownership position.

 
 Embedded terms in definition
 Long
Position
 
 Referenced Terms
 Accounts payable management: Management by the firm of the time that elapses between its Purchase of raw materials and its mailing payment to the supplier.

 Advance commitment: A promise to sell an asset before the seller has lined up Purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price.

 Advanced refunding: Is the technique of replacing one bond issue by another. This typically occurs when a municipality can borrow at more favorable terms than the outstanding issue. The new issue's proceeds are used to Purchase government obligations which are held in escrow. The income and/or appreciation of these government securities is then used to service the outstanding debt. The escrow may be held until the first call date or maturity of the initial bond issue. If the escrowed funds retire the original issue at the first call date then the issue is pre-refunded. This retirement and replacement process of debt is also known as defeasance.

 American style option: Is an option which permits exercise prior to the indicated expiration date. This compares to an European Style option which can only be exercised on the expiration date.An option contract that can be exercised at any time between the date of Purchase and the expiration date. Most exchange-traded options are American style.

 Annuity rate: The single-sum price that an insurance company or pension plan charges for an annuity contract or option of a standard amount such as $1 per month. Annuity rates usually vary by age, and by sex if the annuity is outside a private pension plan, and are in addition to fixed expense charges. Also known as annuity Purchase rate. See unisex annuity rate.

 
 Related Terms
 

<< Punt Purchase accounting >>

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