Redeemable

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Redeemable

Eligible for redemption under the terms of an indenture.

Redemption

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.
References in periodicals archive ?
The fact that redeemability does not determine value except so far as it determines quantity means that we might be able to design a protocol so that the total quantity of coins behaves similarly to a system of competitive and redeemable bank liabilities, without intermediation at all.
The Banking Amendment Act of 1914 enabled the government to end redeemability in gold and declare all privately issued bank notes in circulation to be legal tender.
He argues that the dynamics of change within the payments system would result in the maintenance of a (national currency as a) unit of account function without government intervention requiring redeemability in central bank money.
Investments in money market and bond mutual funds can provide investors with rates of return that are nearly identical to investments in term CDs (the funds can hold these CDs themselves), but with the added convenience of mutual fund redeemability.
The more confidence the bank can imbue in the consumer regarding the redeemability of its notes, the less likely it is that anyone will believe otherwise.
The long maturities would assure that investors were making a substantial commitment to the bank while the redeemability feature would subject the bank to continuous monitoring.
The purchase price to be paid for each properly tendered Note will be the price resulting from a yield to maturity or earliest redemption date equal to a fixed spread (varying in amount depending upon the series, maturity and redeemability of Notes) over the yield to maturity of an applicable United States Treasury security (as quoted on the relevant Bloomberg Page), as determined and announced two business days prior to the expiration date of the applicable Offer.
The dollar could be redefined in terms of gold or a broader commodity bundle, with redeemability for Federal Reserve liabilities being reinstated.
To sum up, the main characteristics to keep in mind are; the voluntary nature of private coinage, the complete absence of any sort of deposit contract between the two transacting parties and the existence of redeemability pledges on the coins.
Finally, commentators pointed out that the mutual fund industry generally was suffering from net redemptions, and that if this malady were not reversed, the interests of all shareholders would be harmed by, among other things, increasing the overall expense ratios of funds and jeopardizing shareholders' right of net asset redeemability.
Thus, when circumstances force one bank to refuse redemption of its IOUs, the public is likely to become suspicious about the continuing redeemability of other IOUs as well.
It has been speculated that the Boston area has some unique combination of service-friendly factors: a civic-spirited corporate community, a mayor friendly to the concept, and a Camelot-era faith in both the redeemability of human beings and the transformability of public life through service.