Investment and Financial Dictionary by InvestorWords.com. Glossary of Stock Market Terms & Definitions. Term of the Day: Buydown: A lump sum payment made to the creditor by the borrower or by a third party to reduce the amount of some or all of the consumer's periodic payments to repay the indebtedness.
In the context of project financing, refers to a one-time payment out of liquidated damages to reflect cash flow losses from sustained underperformance. Economics A-Z terms beginning with A. Financial Terms and Definition.