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


1. In bonds, the act of an issuer repurchasing a bond at or before maturity. Redemption is made at the face value of the bond unless it occurs before maturity, in which case the bond is bought back at a premium to compensate for lost interest. The issuer has the right to redeem the bond at any time, although the earlier the redemption take place, the higher the premium usually is. This provides an incentive for companies to do this as rarely as possible.

2. The act of the issuing company repurchasing stocks or mutual funds. In the case of mutual funds, the repurchase is made at net asset value per share. Stocks may be redeemed in cash or by proration. See also: Proratable factor.


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.


When a fixed-income investment matures, and you get your investment amount back, the repayment is known as redemption.

Bonds are usually redeemed at par, or face value, traditionally $1,000 per bond. However, if a bond issuer calls the bond, or pays it off before maturity, you may be paid a premium, or a certain dollar amount over par, to compensate you for lost interest.

You can redeem, or liquidate, open-end mutual fund shares at any time. The fund buys them back at their net asset value (NAV), which is the dollar value of one share in the fund.

References in periodicals archive ?
The suffering of love is redemptive, transformative, and life-giving, making visible the self-giving Love of God.
In granting summary judgment to GMI, the district court reasoned that section 162(k)(1) didn't bar the deduction because GMI claimed the deduction not for its redemptive dividends but for the portion of them distributed.
The corporation's payment of the redemptive dividend to the trust does not by itself qualify for a Sec.
In the specific context of the novel, the redemptive contract recasts the costs of war, such as death, corruption, and murder, as a moral debt.
The Captain America Complex provides its own rationale for redemptive violence as a means to advance democracy and "rid the world of evil," to use George W.
For Calvin and his contemporaries, both the redemptive and the punitive aspects of God's justice were operational; indeed, his punishment itself was often interpreted as redemptive: it was the chastisement of his people in order to bring them back into obedience.
While Golden's narration can slip into dramatic phrasing and pontification at times, few readers will fail to be moved by her descriptions of mothers' suffering, children's anguish, or the redemptive power of love.
We must be careful how we preach about suffering, particularly to communities and individuals who suffer oppression and silencing because of gender, race, class, sexual orientation, and ability, because it is counter to this gospel to claim this suffering to be redemptive.
While visiting his grandmother, a waitress presents Romain with an offer full of redemptive possibilities, not to mention the opportunity for a menage a trois.
The high-wire act of becoming the engine for such a redemptive gaze is ultimately much more than a politics; it is a metaphysics, a commitment to skate eternally on a surface of immediate presence because that is where we are, together, and it is really real and really, really great here right now.
Full disclosure: In this era of Oprahokayed emotionally redemptive "truth," and given my unreliable memory, perhaps it was not National Geographic but a scene from the movie Heaven Knows, Mr.
I don't believe that every lyric from every song that comes out of hip-hop culture needs to be socially redemptive.