English term
Park fund
XX Partners should refuse any request by any XX employee to create misleading, inaccurate or false documentation, including to “park funds” or misrepresent the intended use for funds.
Could anybody helps explain the term. Your help will be much appreciated.
Sep 29, 2014 07:47: Charlesp changed "Field" from "Art/Literary" to "Bus/Financial"
Oct 2, 2014 21:10: Alexander Kayumov changed "Level" from "PRO" to "Non-PRO"
PRO (2): Aleksandra Kleschina, Yvonne Gallagher
Non-PRO (3): Edith Kelly, Charlesp, Alexander Kayumov
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Responses
"park temporarily or hide funds
http://financial-dictionary.thefreedictionary.com/Parking
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Note added at 54 mins (2014-09-27 14:04:53 GMT)
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. Placing idle funds in a safe, short-term investment while awaiting the availability of other investment opportunities. Many investors end up parking proceeds from a security sale in a money market account while searching for other securities to purchase.
2. Transferring stock positions to another party so that true ownership of the stock will be hidden. For example, an investor involved in the takeover of a company may park securities of the company with other investors so that the management of the target company will not know the extent of the investor's stock ownership. Parking for this purpose is generally illegal.
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Note added at 57 mins (2014-09-27 14:07:43 GMT)
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So, here it seems that the Partners are being warned about attempts under the second option with the words "misrepresent" and "misleading" and "false" used
"create misleading, inaccurate or false documentation, including to “park funds” or misrepresent the intended use for funds".
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Note added at 1 hr (2014-09-27 14:10:19 GMT)
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or here
http://www.investopedia.com/terms/p/parking.asp
Investopedia explains 'Parking'
Definition of 'Parking'
A form of kiting shares that a brokerage commits by moving long positions in unrelated accounts to cover short positions that are improperly settled according to SEC regulations....
When parking shares, brokerage firms are attempting to cover undeclared short positions left over from transactions whose stock was not delivered by the settlement date. Rather than performing a buy-in transaction, these firms collude with one another and, by delaying the settlement process, inflate the number of shares available for trade in the secondary market.
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Note added at 1 hr (2014-09-27 14:21:06 GMT)
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http://www.wifcon.com/bona/bonafide1.htm
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Note added at 15 days (2014-10-13 00:40:35 GMT) Post-grading
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Glad to have helped
agree |
Edith Kelly
: but non-Pro
8 mins
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Thanks. (I don't believe it's non-Pro though)
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agree |
Charles Davis
: Almost certainly means concealing ownership of stock. Definitely not non-Pro.
2 hrs
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Thanks
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agree |
Aleksandra Kleschina
6 hrs
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Thanks
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make the funds unusable or inaccessible
The participant temporarily parked the funds in a non-IRA account...
www.brendelfisher.com/resources/financial-briefs-2?id=2011
In the context you are asking about, it seems to mean that the funds are placed somewhere so that they are not accessible for their intended use. The are "parked" or halted.
Others may have additional insights, but this is how I understand it.
place the money someplace (hold it e.g. in an account)
Park simply means to put the monies someplace. There is nothing notorious about this. Park also implies a sense of temporariness about it. Most commonly overnight. But could be for a longer term. But it is not really an investment (even if interest may be paid on it). It is a place here it is held.
Based on context, you'd have to figure out if the "parking" of the monies was with a legitimate purpose or not. The term is neutral; the context makes the meaning.
Note the posting has a typo. It is "funds" and not "fund" - there is a big difference.
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