Redemption: Difference between revisions
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imported>Doug Williamson (Add links.) |
imported>Doug Williamson (Add link.) |
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== See also == | == See also == | ||
* [[Bond]] | |||
* [[Call option]] | * [[Call option]] | ||
* [[Exercise]] | * [[Exercise]] | ||
Revision as of 11:16, 3 November 2021
The purchase and cancellation of outstanding securities through a cash payment to the holder.
More specifically, the paying off or buying back of a debt security by the issuer on or before its stated maturity date.
The redemption can be made at par value or at a premium, as is the custom when exercising a call option.
