redeem

redeem definition - business

redeem

To convert into cash. For example, a mutual fund shareholder can choose to have shares redeemed by selling them to the fund. A company may decide to redeem a portion of its outstanding bonds by calling them prior to the maturity date.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.