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


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The suffering of love is redemptive, transformative, and life-giving, making visible the self-giving Love of God.
The frenzied murders of the final days of the regime are the focus of Richard Bessel's argument that while redemptive antisemitism can explain the calculated murders of the concentration camps, the seemingly chaotic murders of the war's end that engulfed a wide-range of victims need to be understood through the self-motivation of individuals in a collapsing regime.
At the heart of Eastwood's turn from redemptive violence is a curiosity about those left behind by death and suffering, and a growing suspicion that additional violence merely postpones and multiplies this tragedy.
Schantz finds so many chilling examples of the palpable presence of death as a path to freedom in slave narratives, for example, that the continent seems awash in redemptive blood long before the war.
Christ's redemptive work is such that he has left nothing undone until we are brought to heaven.
"To sum up," he says, "we found that psychological well-being was associated with post-trauma stories that were high in closure, high in redemptive imagery and high in themes of national redemption.
The Eighth Circuit Court of Appeals denied food giant General Mills' deductions for "cash distribution redemptive dividends" it paid participants in the company's employee stock ownership plans (ESOPs).
In a decision that creates a circuit split, the Eighth Circuit reversed a district court and held that a corporation was not entitled to a deduction for cash distribution redemptive dividends paid by the corporation's employee stock ownership plans to plan participants who left the corporation.
Historian Richard Kagan (2002) in a speech to commemorate 9/11 identifies three types of historical memory: toxic memory, redemptive memory and civic memory.
The memoir ends on a redemptive note as Griffin reflects on her children's successes and all she managed to accomplish when the odds were stacked against her.
My reading contends that the women in the novel embody a challenge to the redemptive contract, a contract derived from economic and moral criteria found in early nineteenth-century political economy.