- redemption
- Repayment of a debt security or preferred stock issue, at or before maturity, at par or at a premium price. Bloomberg Financial Dictionary————The extinguishing of a debt through cash payment. Exchange Handbook Glossary————The date a security, such as, a bond, preferred stock or mutual fund shares becomes repayable. This is also called the maturity date. Financial Services Glossary————Certain stocks are repayable at a future date set by the issuing company. London Stock Exchange Glossary————Sale of an investor's shares or units in a collective investment scheme. NYSE Euronext Glossary
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1. an occasion when shares, bonds etc are exchanged for cash from the organization that sold them and made them available:• The table sets out the amount payable on redemption.
• the redemption value of a security
• Analysts expect another large volume of early redemptions of municipal bonds.
2. the act of paying off a loan or debt:* * *
The repurchase of a bond at maturity by the issuer.* * *
redemption UK US /rɪˈdemʃən/ noun [C or U]► FINANCE, STOCK MARKET the act of exchanging shares or bonds for cash: »Redemptions made by telephone for shares recently purchased by check will not be honored unless the check has cleared.
»For redemptions of $50,000 or more, you must include a signature guarantee for each owner.
»redemption requests/orders/penalties
»redemption proceeds/fees/yields
make/request/submit a redemption »You may request a redemption or an exchange by calling our Shareholder Service Center.
► FINANCE the act of paying back a loan: redemption of debt/a loan/a mortgage »The nation's largest jewelry retailer reported an 11% rise in earnings for the latest quarter, boosted by higher sales and the early redemption of debt.
Financial and business terms. 2012.
