Redemption Right

Term Main definition
Redemption Right

The right of a security holder (e.g., the owner of preferred stock) to require the issuer to redeem (or purchase) some or all of his or her securities at a specified (or determinable) price and after a specified period of time has elapsed. The purchase price is usually the original investment price plus any accrued and unpaid dividends, and is often payable in installments over an agreed time period. Also referred to as a back-end put or forced buyback.