Redemption: Difference between revisions
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== See also == | == See also == | ||
* [[Call option]] | * [[Call option]] | ||
* [[Exercise]] | |||
* [[Maturity]] | |||
* [[Par]] | * [[Par]] | ||
* [[Premium]] | * [[Premium]] | ||
* [[Puttable]] | * [[Puttable]] | ||
* [[Redemption value]] | * [[Redemption value]] | ||
* [[Security]] | |||
* [[Sinking fund]] | * [[Sinking fund]] | ||
* [[Spens clause]] | * [[Spens clause]] | ||
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.
