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Investments glossary

Down Payment


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I gave Donald free rein, he has great vision, and everything he touches seems to turn to gold. Donald is the smartest person I know.

— Fred Trump

A down payment is a type of payment made in cash during the onset of the purchase of an expensive good or service. The payment represents a percentage of the full purchase price; in some cases, it is not refundable if the deal falls through because of the purchaser. In most cases, the purchaser makes financing arrangements to cover the remaining amount owed to the seller.

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