The return of an investor's principal in a security, such as a bond, preferred stock or mutual fund shares, at or prior to maturity.

Use redemption in a sentence

You should know how much the redemption will be before you ever decide to invest in any bond or mutual fund.

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The redemption process for corporate issued bonds typically requires that you submit the bond and payment coupons to issuer's bank of record.

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When our company issued bonds to finance a new expansion, the bondholders insisted on including a provision that would allow them to get a redemption of their money after a set number of years.

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