What is redemption?

[ankita]

I keep hearing the term redemption in different contexts—finance, religion, even everyday life. Can someone explain What is redemption and maybe give a simple example?

 

[robertwilliam]

Redemption refers to the act of repaying, recovering, or exchanging something of value, often in financial or religious contexts. In finance, it means repurchasing bonds, mutual fund units, or shares by returning investors’ money. Broadly, it also signifies deliverance, salvation, or making amends for past actions.

 

[jainnorton]

Redemption is the act of regaining, recovering, or exchanging something for better. In finance, it's repaying a debt or cashing in an investment. Figuratively, it means atoning for a past mistake or finding salvation from error or evil.

 

[kuldeep]

Redemption is the process of repaying or buying back a financial instrument, like bonds or shares, before or at maturity. It allows investors to recover their principal or cash out their investment. Redemption can also refer to exchanging points, coupons, or rewards for goods or services.

 

[alexie]

"Redemption" refers to the act of saving, retrieving, or repurchasing something or someone, typically by paying a quantity of money, meeting a condition, or atoning for a mistake. It includes ideas like reclaiming property, paying off a debt, overcoming sin, and atoning for past wrongs.

 

[Samuel]

Redemption is the process of repurchasing or paying back a financial instrument, such as shares, bonds, or mutual fund units, by the issuer. It typically occurs at or before maturity, where investors receive the principal amount or market value, marking the end of their investment in that security.