Exchange Currency

dual-purpose fund

A closed-end fund which distinguishes between common shareholders and preferred shareholders for distribution purposes. Common shareholders receive all distributions from capital gains, while preferred shareholders receive all distributions from dividend and interest income. The class of shares sold to common shareholders is called capital shares, and this group of shareholders generally has a less stable payment stream. The class of shares sold to preferred shareholders is called income shares, and their income stream is relatively more stable. When a dual-purpose fund is set up, a liquidation date is specified. On the liquidation date, preferred shareholders have the first right to payouts from the fund, but they can only be paid up to the par value of their shares. Common shareholders have rights to all the remaining capital from the fund.

Related information about dual-purpose fund:
  1. Dual Purpose Fund Definition | Investopedia
    A fund created by a closed-ended investment company that offers two classes of stock. Each class offers entitlements to either income or capital appreciation.
     
  2. What is dual-purpose fund? - InvestorWords.com
    Definition of dual-purpose fund: A closed-end fund which distinguishes between common ... When a dual-purpose fund is set up, a liquidation date is specified.
     
  3. Dual-Purpose Fund - Financial Dictionary - The Free Dictionary
    A 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 ...
     
  4. Dual Purpose Fund: Definition from Answers.com
    exchange-listed Closed-End Fund that has two classes of shares. Preferred shareholders receive all the income (dividends and interest) from the portfolio,
     
  5. Mutual Funds; Hunting in the Dual-Purpose Patch - New York Times
    Aug 29, 1993 ... As a rough illustration, the net asset value of the Convertible Holdings dual- purpose fund as of Friday was $23.59 a share, but the price of an ...
     
  6. Dual-purpose fund - Merriam-Webster Online
    a closed-end investment company with two classes of shares one of which is entitled to all dividend income and the other to all gains from capital appreciation ...
     
  7. What is DUAL PURPOSE FUND? - The Law Dictionary
    Definition of DUAL PURPOSE FUND: A MUTUAL FUND or UNIT TRUST that issues two separate types of securities, including income shares, which are entitled ...
     
  8. What is dual-purpose fund? - BusinessDictionary.com
    Definition of dual-purpose fund: An investment that is created with two different types of stocks or bonds.