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Eligible for redemption under the terms of an indenture.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The nature of an obligation to repurchase or redeem stock is the issue raised by mandatorily redeemable preferred stock and put options written on an enterprise's own stock.
Additionally, the board approved fourth quarter cash dividends of USD0.46875 per share on the company's 7.50% series D cumulative redeemable preferred stock; USD0.434375 per share on its 6.95% series F fixed-to-floating rate cumulative redeemable preferred stock; USD0.40625 per share on its 6.50% series G fixed-to-floating rate cumulative redeemable preferred stock; and USD0.507813 per share on its 8.125% series H cumulative redeemable preferred stock.
In accordance with the terms of Annaly's 7.625% Series C Cumulative Redeemable Preferred Stock ("Series C Preferred Stock"), the board of directors of Annaly has declared a Series C Preferred Stock cash dividend for the second quarter of 2017 of USD 0.476563 per share of Series C Preferred Stock.
RAIT Financial Trust (NYSE: RAS) board of trustees declared a first quarter 2017 cash dividend of USD 0.484375 per share on RAIT's 7.75% Series A Cumulative Redeemable Preferred Shares, USD 0.5234375 per share on RAIT's 8.375% Series B Cumulative Redeemable Preferred Shares and USD 0.5546875 per share on RAIT's 8.875% Series C Cumulative Redeemable Preferred Shares, the company said.
Also, the board authorised a cash dividend of USD0.414063 per share on the company's 6.625% series C cumulative redeemable perpetual preferred stock; USD0.367188 per share on its 5.875% series G cumulative redeemable preferred stock; USD0.460938 per share on its 7.375% series H cumulative redeemable preferred stock; USD0.396875 per share on its 6.350% series I cumulative redeemable preferred stock; and USD0.328125 per share on its 5.250% series J cumulative redeemable preferred stock.