redemption

Redemption

The return of an investor's principal in a security, such as a stock, bond, or mutual fund.

Notes:

Redemption of mutual fund shares from a mutual fund company must occur within seven days of receiving a request for redemption from the investor.

See also: Mutual Fund, Systematic Withdrawal Plan

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Redemption

Repayment of a debt security or preferred stock issue, at or before maturity, at par or at a premium price.

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redemption

The retirement of a security by repurchase. Although generally used in reference to the repurchase of a bond before maturity, the term also applies to stock and mutual fund shares. See also partial redemption.