What is ‘Partial Redemption’
An investment-transaction classification that refers to the withdrawal of a portion of a security’s value by the owner. Rather than withdrawing the entire amount of his or her security’s value from the account, an investor may prefer to keep a portion of the value invested in the asset while still obtaining some cash.
Explaining ‘Partial Redemption’
For example, a partial redemption occurs if an investor orders the withdrawal of a portion of Treasury notes held in an account. The account owner would specify the proportion of the asset he or she would like to withdraw; the amount withdrawn includes a portion of the asset’s principal and interest earned.
Further Reading
- Recovery before redemption – ideas.repec.org [PDF]
- Hybrid financial product – patents.google.com [PDF]
- Evaluating the Economics of Refunding High-Coupon Sinking-Fund Debt – www.jstor.org [PDF]
- Purchase and redemption patterns of US equity mutual funds – www.jstor.org [PDF]
- Risk management framework for hedge funds: role of funding and redemption options on leverage – papers.ssrn.com [PDF]
- Framing and the disposition effect: evidence from mutual fund investor redemption behaviour – www.tandfonline.com [PDF]
