|
|
Redemption |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
RedemptionThe process of canceling a defeasable title to land, such as is created by a mortgage foreclosure or tax sale.RedemptionThis is the right of the mortgagor to recover mortgaged property on repayment of the loan and any interest due. This legally means that once you as the borrower have finished repaying the mortgage you took out, the property is yours and the lender has no further claim on it. If you pay of the mortgage ahead of schedule you may face a redemption penalty which compensates the lender for loss of interest.RedemptionThe re-purchase of a security, such as a bond or preferred stock, by the issuing company at or before maturity.RedemptionRepayment of a debt security or preferred stock issue, at or before maturity, at par or at a premium price.Redemption Similar MatchesSerial redemptionSerial redemptionThe redemption of a serial bond. Preferred equity redemption stock (PERC)Preferred equity redemption stock (PERC)Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives. Redemption feeRedemption feeA fee some mutual funds charge when an investor sells shares within a specified short period of time. Redemption penalty overhangRedemption penalty overhangThis is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place. Extended redemption penaltyExtended redemption penaltyThis is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place. Further SuggestionsRedemption statementRedemption date Redemption Period Mandatory redemption schedule redemption price right of redemption Redemption penalties Redemption cushion gross redemption yield Redemption price redemption yield Overhanging redemption penalty redemption fees redemption date Redemption charge Right of redemption |
|
|
|