- right to call or redeem a firm’s outstanding preferred stock by paying the preferred stockholders the par value of the stock plus a premium.
- repayment of bonds by a call before maturity, usually involving a call premium.
- repayment of mutual funds at net asset value when a shareholder’s holdings are liquidated.
- repayment of a debt security or preferred stock issue by payment of the principal at maturity, or at an earlier date if the issuer calls the security and pays a premium to debt security holders. Also, the liquidation of mutual fund shares by selling shares back to the fund’s investment manager at the Net Asset Value (NAV) price.
- mortgagor’s right, called the equity of redemption, to recover foreclosed property by paying principal and interest due, plus the lender’s out-of-pocket costs.
- in bankruptcy, the right of a debtor to reclaim personal property by paying creditors the estimated fair market value of assets secured by a lien.
- regaining possession by payment of a stipulated price; especially, process of annulling a defeasible title, such as is created by a mortgage or tax sale, by paying the debt or fulfilling other obligations.
- for tax purposes, purchase by a corporation of its own stock.
- in marketing, accepting a coupon for partial payment of goods bought.
- acquisition by a corporation of its own stock in exchange for property, without regard to whether the redeemed stock is canceled, retired, or held as treasury stock.
repayment of a debt security or preferred stock issue, at or before maturity, at PAR or at a premium price.
Mutual fund shares are redeemed at Net Asset Value when a shareholder’s holdings are liquidated.
- exchanging a coupon, trading stamp, or similar device for a discount or premium.
- percentage of coupons or trading stamps actually turned in; also called redemption rate.