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Amwelladmin (talk | contribs) (Created page with "{{a|banking|}}{{dpn|/rɪˈdiːm/|n|}}O a financial instrument, to surrender it for cancellation against payment, delivery or some other abstract benefit, such as the discharge of a liability. ====Debt securities==== Most debt securities are redeemed against payment of their face value — or some other specified amount — on a specified redemption date. ====Emissions allowances==== {{redemption of emissions allowances}}") |
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{{a|banking|}}{{dpn|/rɪˈdiːm/|n|}} | {{a|banking|}}{{dpn|/rɪˈdiːm/|n|}}Of a [[financial instrument]], to surrender it for cancellation against payment, delivery or some other abstract benefit, such as the discharge of a liability. Often its face value, redemption amount, or [[net asset value]]. | ||
One can only redeem an instrument per its terms and conditions: usually upon a stated [[maturity date]], an optional redemption date, or on the occurrence of some observable market event or strike price, although some instruments (like units in a [[hedge fund]] or [[open-ended investment company]]) allow you periodic or even daily redemption rights. | |||
Other financial instruments (e.g. [[share]]s) have no redemption rights, ever. | |||
If you want to end your investment in a financial instrument and you cannot redeem it, you must sell it in the [[secondary market]]. | |||
====Emissions allowances==== | ====Emissions allowances==== | ||
{{redemption of emissions allowances}} | {{redemption of emissions allowances}} | ||
{{sa}} | |||
*[[Subscription]] | |||
*[[Secondary market]] | |||