Redemption

Brokerage Anatomy™ →Go uptown FIA/ISDA documentation | Trading capacities: Principal | Undisclosed principal Riskless principal | Agent | Undisclosed agent Broker types: Broker | Dealer | Broker/dealer | Executing broker | Clearing broker | Prime broker | FCM | CCP Clearing: Clearing overview | How clearing works | What gets cleared? | Who clears? | Clearing documentation Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

Realising the value of your investment in a financial instrument by redeeming it — giving it back to the issuer for cancellation against payment of its face value, redemption amount, or net asset value — rather than selling it in the secondary market.

Requires the instrument in question to have reached its maturity, or an optional redemption date, or be the sort of thing (like an investment in an open-ended investment company) with periodic redemption rights. Some sorts of intruments (e.g. shares) don't ever do that, so all you can do to liquidate your investment is to sell them,