HomeDefinitionsCompareDebt Pay downThe financial definition for Pay down:In a Treasury refunding, the amount by which the par value of the securities maturing exceeds that of those sold. In the context of general equities, paying a lower price in an accumulation of stock. Antithesis of pay-up. Similar MatchesAverage downAverage downA strategy used by investors to reduce the average cost of shares, in which the investor purchases more shares with a fixed amount of capital as the price of the shares decrease. The investor receives more shares per dollar and decreases the average price per share. Builder buydown loanBuilder buydown loanA mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder uses cash to buy down the mortgage rate to a lower level than the prevailing mortgage loan rate for some period of time. The typical mortgage is 3% of the interest rate amount for the first year, 2% for the second year, and 1% for the third year (also referred to as a 3-2-1 buydown). Cram down dealCram down dealA merger in which stockholders are forced to accept undesirable terms, such as junk bonds instead of cash or equity, due to the absence of any better alternatives. Further SuggestionsCramdownDown and in option Down and out option Down round Downside Protection Downside risk Downstream Click to compare definitions of Pay down Click to view definitions beginning pa |