Redemption

Business / Taxes / Redemption: 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.

Redemption Charge

Business / Finance / Redemption Charge: The commission a mutual fund charges an investor who is redeeming shares. For example, a 2% redemption charge (also called a back end load) on the sale of shares valued at $1000 will result in payment MORE

Redemption Cushion

Business / Finance / Redemption Cushion: The percentage by which the conversion value of a convertible security exceeds the redemption price (strike price). MORE

Serial Redemption

Business / Finance / Serial Redemption: The redemption of a serial bond. MORE

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