Redemption Value
/rɪˈdɛmʃən ˈvæljuː/
Definitions
- (n.) The amount of money or other consideration that must be paid to repurchase or redeem a security, bond, or financial instrument prior to or at maturity.
The bond's redemption value was set higher than its purchase price to compensate investors.
Forms
- redemption value
- redemption values
Related terms
See also
Commentary
Redemption value is typically specified in the terms of bonds or preferred stock and may include premiums; clarity in drafting helps avoid disputes over the exact repurchase amount.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.