Hence, there is a difference between the issue and redemption prices because the issue price is before estimated sales costs, and the redemption price is after estimated sales costs.
Redemption value is the price at which the issuing company will repurchase the bond from investors before its maturity date. A callable bond allows the issuer of the bond to pay off its debt early.
Redemption value is the price at which the issuing company may choose to repurchase a security before its maturity date. A bond is purchased "at a discount" if its redemption value exceeds its purchase price. It is purchased "at a premium" if its purchase price exceeds its redemption value.
The redemption value is stated as a percentage of face value. For example, a $1000 bond redeemable at 105 is redeemed at 105% of $1000 = $1050.
Redemption value means principal plus accrued interest of a Series I savings bonds, as of the date of redemption. In the case of book-entry Series I savings bonds, it also refers to a portion of the principal amount plus a proportionate amount of accrued interest of a bond, as of the date of redemption.
Redemptions are when a company requires shareholders to sell a portion of their shares back to the company. For a company to redeem shares, it must have stipulated upfront that those shares are redeemable, or callable.
A stock redemption is a transaction in which a corporation acquires its own stock from a shareholder in exchange for cash or other property. The redeeming corporation generally does not recognize gain or loss, unless it distributes appreciated property.
It's the charge you pay if you choose to repay your loan earlier than the original final repayment date. Lenders do this to try and get back some of the money they'll lose out in interest repayments if you repay your loan early. A typical penalty amount is about the equivalent of one or two months' loan interest.
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 of $980 (or 98% of the value) to the investor.
Redemption is a period after your home has already been sold at a foreclosure sale when you can still reclaim your home. You will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process. Many states have some type of redemption period.
A stock redemption agreement is a buy-sell agreement between a private corporation and its shareholders. The agreement stipulates that if a triggering event occurs, the company will purchase shares from the shareholder upon their exit from the company.
The price or NAV a unitholder is charged while investing in an open-ended scheme is called sales price. It may include sales load, if applicable. Repurchase or redemption price is the price or NAV at which an open-ended scheme purchases or redeems its units from the unitholders.
Minimum Redemption Amount means the amount specified in the applicable Final Terms as being the Minimum Redemption Amount per Specified Denomination. Minimum Redemption Amount means the amount per Note specified as such in the applicable Product and/or Pricing Supplement(s).
Redemption is the buying back of something. You might try for redemption by attempting to buy back a bike you sold, or you might attempt to buy back your soul after you steal someone else's bike.
Redemption can refer to receiving something after a waiting period, at maturity, on selling or in lieu of a coupon. At the time of redemption investors receive par value or face value of security.
What is a minimum redemption? A minimum redemption means you must accumulate a minimum number of points before you can redeem your rewards. For example, a rewards card might require you to pile up $25 in cash back or 2,500 points before you can redeem.
A redemption fee is a fee charged to an investor when shares are sold from a fund. This fee, also known as an exit fee, market timing fee, or short-term trading fee, is charged by the fund company and then added back to the fund.
A redemption fee is charged on all shares sold. Funds impose redemption fees to deter market-timers and avoid passing transaction costs on to remaining shareholders.
The SEC generally limits redemption fees to a maximum of 2%. What is the intent of a STRF? Many mutual fund companies have adopted STRF as a tool to combat market timing and other abusive short term trading in fund shares.
The length of time to go through mortgage redemption will depend on if you're remortgaging or coming to the end of your mortgage term. Receiving the statement from your lender should take around five days, and they are valid for usually around four weeks.
You may be charged a mortgage redemption fee if you're paying off your mortgage before the date you previously agreed with your lender. This redemption fee is different from early repayment charges (ERC), which you pay if you had agreed to stay on a mortgage deal for a tie-in period and then decide to leave early.
Usually the amount is equivalent to one or two months' interest, but can be much more on a mortgage. Typically, the earlier in the credit agreement you repay the loan, the higher the charge as the interest component of the loan repayment makes up a higher proportion of the repayment, the earlier in the loan term it is.
First, the other partners — or a new partner — can purchase the target partner's interest. This we call a “sale” or “cross purchase.” Alternatively, the partnership can purchase the interest of the partner directly, without involving the other partners. This we call a “redemption.”
Corporate Tax Consequences
Payment of cash to redeem stock has no effect on taxable income of the corporation, but if it distributes property, then it must recognize a gain, but not losses, as if the property were sold for the fair market value to the stockholder.
A corporation that distributes amounts in redemption of its stock can reduce its post-February 28, 1913, accumulated earnings and profits only by the ratable share of those earnings and profits attributable to the redeemed stock ( ¶747) ( Code Sec. 312(n)(7)).