| 释义 |
external funds External fundsFunds originating from a source outside the corporation to increase cash flow and to aid in expansion efforts, e.g., bank loan or bond offering.External Fund1. A mutual fund that invests predominantly or exclusively in securities issued in foreign countries. An external fund does not necessarily concentrate on any single country, but it does not invest in securities from the country in which it operates. An external fund should not be confused with a global fund, which invests in both domestic and foreign securities. An external fund is also called an international fund.
2. Funding that a company raises from any source other than itself. Two common types of external funds are bond and stock issues. A company seeks external funds when it wishes to expand its operations or other activities, but lacks the cash flow to do it independently. Providers of external funds almost always expect to receive something in return; for example, bondholders expect interest and principle repayment, while stockholders expect to receive a portion of the ownership of the company.external funds The funds that are raised from sources outside a firm. The monies that are received from the sale of stock and bonds are external funds. Firms seek external funds when they are unable to finance expenditures with money generated from operations. External funds are particularly important for a young, fast-growing company that has capital requirements that greatly outstrip its ability to generate funds internally. Compare internal funds. |