Redemption

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.

See also

• Call option
• Par
• Premium
• Puttable
• Sinking fund
• Undated