Key Takeaways. In finance, redemption describes the repayment of a fixed-income security—such as a Treasury note, certificate of deposit, or bond—on or before its maturity date. Mutual fund investors can request redemptions for all or part of their shares from their fund manager.
Redemptions are when a company requires shareholders to sell a portion of their shares back to the company. For a company to redeem shares, it must have stipulated upfront that those shares are redeemable, or callable.
You might try for redemption by attempting to buy back a bike you sold, or you might attempt to buy back your soul after you steal someone else's bike.
In mutual funds, the term redemption means withdrawing your investment from the fund. As an investor, you may choose to redeem your money from a mutual fund for various reasons like the requirement of funds, if the fund is not delivering the desired returns, if you meet your investment objective, etc.
Redemption Transaction means (a) the repayment of 100% of the Senior Notes, (b) the repayment or conversion to common Capital Stock of the Parent of 100% of the Senior Convertible Notes, and (c) the redemption or conversion to common Capital Stock of the Parent of 100% of the Series A Preferred Stock.
Redemption is an essential concept in many religions, including Judaism, Christianity, and Islam. The term implies that something has been paid for or bought back, like a slave who has been set free through the payment of a ransom.
Cash Redemption means the redemption of certain shares of Parent Common Stock in exchange for an amount in cash equal to the sum of (i) the Redeemable Cash plus the Interest Amount; less (ii) the aggregate amount of the Cash Consideration; Cash Redemption shall have the meaning specified in Section 3.03(b). Sample 1.
Investment funds redemption is the repayment by the issuer to the holder of securities before their maturity date. These can be stock shares, mutual funds, bonds, etc. Investors can redeem, or cash in, part or all of their investments. Each type of security may have specific guidelines for cashing in the investments.
If the distribution is treated as a dividend, the amount of the distribution is considered ordinary income. A redemption is treated as a sale or exchange in the following situations: The distribution is not essentially equivalent to a dividend. It is substantially disproportionate with respect to the shareholder.
In redemption by payment in a lump sum, debenture holders receive their promised sum on the fixed date. The lump-sum refers to the total amount of principal of all the debentures whose redeeming does not occur at a premium or discount.
The redemption value is stated as a percentage of face value. For example, a $1000 bond redeemable at 105 is redeemed at 105% of $1000 = $1050. Bonds can be freely bought and sold.
Liverpool-based DI Colette Cunningham uproots to Dublin when she learns that her estranged daughter, Stacey, has taken her own life. Once there, Colette meets her two teenage grandchildren for the first time. Despite having never known of their existence she's their named guardian.
God saves sinners by redeeming them from this slavery. Paul describes it in Colossians: “He has delivered us from the domain of darkness and transferred us to the kingdom of his beloved Son, in whom we have redemption, the forgiveness of sins” (Colossians 1:13-14).
The company redeems shares when it decides to pay back the shareholders. It is a way of paying the shareholders, similar to paying dividends. read more. When the companies redeem shares, the number of total shares outstanding reduces for the company, and the earnings per share or the company's EPS.
Redeem shares the easy way
Redeemable shares are shares that a company has agreed it will, or may, redeem (in other words buy back) at some future date. The shareholder will still have the right to sell or transfer the shares subject to the articles of association or any shareholders' agreement.
Shareholder-Initiated Transfer Redemption means a transaction that is initiated or directed by a Shareholder that results in a transfer of assets within a Contract out of a Fund, but does not include transactions that are executed: (i) automatically pursuant to a contractual or systematic program or enrollments such as ...
Corporate Tax Consequences
Payment of cash to redeem stock has no effect on taxable income of the corporation, but if it distributes property, then it must recognize a gain, but not losses, as if the property were sold for the fair market value to the stockholder.
Redemption is another word for getting your money out. It's vital that each investor understands the redemption regime of their superannuation fund.
With a redemption plan, the business enters into a contract with the owners to purchase each owner's interest at a specified time. In the cross- purchase arrangement, the owners establish an agreement among themselves to buy and sell the stock. The business entity is not a party to the arrangement.
Private Equity Glossary
The right or obligation of a company to repurchase its own shares. Redemption Rights – Rights to force the company to purchase shares (a “put”) and more infrequently the company's right to force investor to sell their shares (a “call”).
If redeeming liquid funds, investors can expect a redemption timeline of around 1-2 working days and for debt funds, the redemption period ranges between 2-3 working days.
How long will you take to receive your fund redemption amount? When you redeem your mutual fund, you will typically receive your unit's funds within 1 to 5 working days. If you redeem a debt-related fund or a liquid fund, you will get your money within 1 to 2 working days.
Redemption Percentage means the greater of (i) 120%, or (ii) a fraction (expressed as a percentage) in which the numerator is the highest closing price of the Common Stock during the aforedescribed thirty (30) day period and the denominator of which is the lowest conversion price during such thirty (30) day period.
In General. There are two types of redemption: Equitable redemption and Statutory redemption.
The price or NAV a unitholder is charged while investing in an open-ended scheme is called sales price. It may include sales load, if applicable. Repurchase or redemption price is the price or NAV at which an open-ended scheme purchases or redeems its units from the unitholders. It may include exit load, if applicable.