Proof Of Funds - POF

AAA

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.

INVESTOPEDIA EXPLAINS '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. Bank

    A financial institution licensed as a receiver of deposits. There ...
  2. Guarantor

    A person who guarantees to pay for someone else's debt if he ...
  3. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
  4. Identity Theft

    The crime of obtaining the personal or financial information ...
  5. Nigerian Scam

    A scam where the sender requests help in facilitating the transfer ...
  6. Signature Guarantee

    A form of authentication issued by a bank or other financial ...
Related Articles
  1. Online Investment Scams Tutorial
    Economics

    Online Investment Scams Tutorial

  2. The Biggest Stock Scams Of All Time
    Investing

    The Biggest Stock Scams Of All Time

  3. How Visa Counts On Your Free-Spending ...
    Stock Analysis

    How Visa Counts On Your Free-Spending ...

  4. Don't Sign That! Legal Pitfalls of Signatures ...
    Personal Finance

    Don't Sign That! Legal Pitfalls of Signatures ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center