lease fund

lease fund definition - business

lease fund

An investment company that invests the shareholders' money in lease obligations. A lease fund is very similar to a bond fund, except that the maturities of its investments are shorter. Because leases do not have an active secondary market, the fund manager must secure outside agreements to buy the leases in case the shareholders redeem their shares.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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