DEFINITION of 'Proof Of Funds - POF'

A document that demonstrates that a person has the ability and funds available to use for a transaction. It usually comes in the form of a bank, security or custody statement. The purpose of the document is to ensure that the funds required for the transaction are obtainable and legitimate.

BREAKING DOWN 'Proof Of Funds - POF'

Some con artists who are planning a financial scam will request a proof of funds. They want to make sure that they are concentrating their efforts on someone with significant financial worth. Therefore, it is important to make sure that you only give proof of funds to trusted individuals whom you have thoroughly investigated.

RELATED TERMS
  1. Questioned Document Investigation

    An in-depth look into a document which is being questioned in ...
  2. Definitive Securities

    Securities that are issued in the form of a paper certificate ...
  3. Burden Of Proof

    A legal standard that requires parties to demonstrate that a ...
  4. Alternative Documentation

    A documentation process designed to expedite loan approval where ...
  5. Notarize

    The act of officially certifying a legal document by a notary ...
  6. Cleared Funds

    A balance in an account that is able to be withdrawn or used ...
Related Articles
  1. Financial Advisor

    College Funding Decisions: 529 and Custodial Plans

    A look at the differences between custodial accounts and 529 plans, including which to draw upon first to begin funding your child’s college tuition.
  2. Managing Wealth

    Protecting Your Financial Documents From Disaster

    Organizing and updating your records regularly can save you a lot of grief in a time of crisis.
  3. Retirement

    4 Estate Planning Documents You Need to Have

    Here's the lowdown on the four essential legal documents you need—right now—to have in place before you die.
  4. Personal Finance

    Credit Scams To Watch Out For

    More than 30 million people were victims of fraud in 2007. Will you be next?
  5. Managing Wealth

    Pros/Cons of Storing Estate-Planning Papers Online

    Digital storage takes the hassle out of keeping track of estate-planning paperwork, but there are a few significant drawbacks.
  6. Investing

    Digging Deeper: The Mutual Fund Prospectus

    The legal jargon of this document can be daunting. Find out how to get to the important stuff.
  7. Retirement

    Healthcare Documents You Need In Place Right Now

    If you become incapacitated, here are some documents that should be in place to say who is authorized to speak on your behalf.
  8. Investing

    ETFs Vs Index Funds: Quantifying The Differences

    When it comes to the ability to track the performance of an index, exchange-traded funds and index funds each have certain advantages.
RELATED FAQS
  1. How do I file a proof of claim against someone who has filed bankruptcy?

    Find out how to file a proof of claim as a creditor when someone who owes you money submits a bankruptcy petition, halting ... Read Answer >>
  2. What are the GAAP standards for digital document storage?

    According to Sarbanes Oxley Act (SOX), companies are required to keep all documents that contain information about a company's ... Read Answer >>
  3. How can I change the information on my Social Security card?

    Discover the process of filing for a name change on your social security card, the documentation required for the request ... Read Answer >>
  4. How can I change my name on my Social Security card?

    Learn what documents are needed to change your name on your Social Security card whether you are a natural-born or foreign ... Read Answer >>
  5. What should you bring to a bank to open a checking account?

    Learn which documents you need to bring to the bank to open a new checking account. Having the right documents saves time ... Read Answer >>
Trading Center