Another type of investment company, the closed-end fund, does not redeem its shares but typically offers a fixed number of nonredeemable
shares that are bought and sold on a stock exchange.
In Exhibit 5, I have also applied Equation (1) to calculate the price V(bond) of a conventional nonredeemable
FNMA note implicit in the observed ISFD price and the calculated option values as of August 30, 1991.
Under this option, the issuer or holder of the nonredeemable
preferred stock will not have a "right" to redeem such stock at any time in the future, but the preferred stock will have a clause allowing the stock to become voting stock if certain financial (or nonfinancial if desired) goals are not achieved.
Some bond indentures containing anti-takeover covenants have been written in such a way that the bonds are nonredeemable
for a period of years.
Nonvoting common stock or nonredeemable
preferred stock if the investor is able to exercise significant influence and the stock does not meet the definition in FASB Statement no.
Prior to September 17, 2012, Citi's results related to its 49% interest were reported in net income (loss) applicable to nonredeemable noncontrolling interests on page 10 of Morgan Stanley's Financial Supplement accompanying this release.
Net income applicable to nonredeemable noncontrolling interests
Series B nonredeemable
convertible preferred stock, 600,000 shares authorized; 475,087 shares issued and outstanding as of December 31, 2010 and September 30, 2010, respectively