Dual Purpose Fund

Dual Purpose Fund - A dual - purpose fund is a security created by a closed end investment that offers 2 classes of stock. A closed end stock has a fixed number of shares so it?s not like a typical investment stock. A dual- purpose stock offers two entitlements. One is income, the other is capital appreciation Preferred shareholders receive all distributions for interest income, and dividends. Common shareholders receive only distributions from capital gains on the liquidation date. Preferred shareholder has the firs right to payouts from the fund up to par value. Commons shareholders have the right to the remaining capital of the fund.