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Redemption charge |
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Redemption chargeThe 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. This charge may decline or be eliminated as shares are held for longer time periods.Redemption charge Similar MatchesRedemption penaltiesRedemption penaltiesCharges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts, and can be particularly severe within the first year. This is to ensure that the costs that the lender endures in setting up the mortgage are always covered. Penalties can be a fixed sum of money, though are often proportion of the loan. With cashback mortgages, you often have to repay the amount of money you received as cashback. Gross redemption yieldGross redemption yieldSee 'redemption yield'. RedemptionRedemptionThe re-purchase of a security, such as a bond or preferred stock, by the issuing company at or before maturity. Redemption dateRedemption dateThe date on which a bond matures or is redeemed. Redemption statementRedemption statementThe outstanding amount to be repaid on an existing mortgage. Redundancy insurance Another form of income protection, but one that does not cover any form of sickness, injury or disability. The purpose of this type of policy is to replace income lost through a short to medium term period of redundancy. It provides you with a monthly tax-free income to cover a portion of your lost earnings. It is often sold in conjunction with the accident, sickness and disability element of income protection policies, in which case it is known as Accident, Sickness and Unemployment (ASU). Further Suggestionsredemption yieldright of redemption Overhanging redemption penalty Mandatory redemption schedule Redemption Redemption Redemption fee Redemption Period Redemption penalty overhang Redemption price redemption fees Redemption cushion Right of redemption redemption date Extended redemption penalty redemption price Preferred equity redemption stock (PERC) Serial redemption Redemption |
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