redeem

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

redeem

(1) In mortgages, to cure a default by paying all past-due sums and penalties after receiving notice of default, but before acceleration. (2) To exercise the post-foreclosure right of redemption, if allowed. (3) Under federal law, the IRS has 120 days after foreclosure to purchase property on which it had a lien—to redeem the property. (It rarely does this,and would only do so if it believed it could sell the property at a profit large enough to justify the time and trouble.)

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The courts may be more likely to apply the reasonable-probability-of-receipt theory to disallow the increased charitable deduction when the charity's interest is redeemed at a much lower rate than the value established for gift tax purposes on audit.
One in three people with Air Miles also admitted they had never redeemed their rewards.
Held through DTC, the series K depositary shares will be redeemed in accordance with the procedures of DTC.
2006-30, (26) the Service announced the withdrawal of proposed regulations (27) providing guidance on the treatment of the basis of redeemed stock when a redemption is treated as a dividend under Sec.
Four credits can be redeemed for 4,000 Mileage Plus miles or a Hyatt $100 Off two-night stay certificate; eight credits are worth 8,000 bonus miles or two 500-mile upgrades; and so on, up to 32 credits which are redeemable for 90,000 bonus miles or a free business-class international ticket.
In 1988, Moriah redeemed Joann's stock; she reported a capital gain on her 1988 tax return.
All shares of series F stock are held in book-entry form and will be redeemed on a pro rata basis from the shareholders of record.
All 14,583,603 Series I Depositary Shares outstanding will be redeemed on July 2, 2018 for an aggregate redemption price of USD 364,590,075.
301(c)(2), if the distribution exceeds E&P, it is a return of capital up to the shareholder's basis in the redeemed stock.
Seagram, by receiving warrants (which satisfied both tests) equal to the number of shares redeemed was deemed to still own 164.2 million shares.
On the redemption date of 27 March 2019, the company plans to redeem USD1bn aggregate principal amount of 3.100% senior notes due 2020 at a make-whole redemption price, plus its accrued and unpaid interest to be redeemed from the last interest payment date of 15 March 2019, to, but not including, 27 March 2019.