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partial redemption

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Financial Dictionary

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.

Investopedia Commentary

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 The account owner would specify the proportion of the asset he or she would like to withdraw the amount withdrawn includes a portion of the asset's principal and interest earned.

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See also: Flight to Quality, Government Security, Redemption, T-Bill, Treasury Note, U.S. Treasury

Also spelled: partial redemptions, redeem in part

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Financial Dictionary

partial redemption

Redemption by an issuer of less than an entire issue of its securities. For example, a corporation may redeem a portion of an outstanding bond issue.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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