Redemption Rights
Redemption Rights are contractual agreements giving investors the right to compel a company to repurchase their shares at a predetermined price after a certain period.
Benefits
Redemption rights let investors require a company to repurchase shares after a specific period.
Frequently Asked Questions
What is the meaning of redemption rights?
Redemption rights let investors demand the company repurchase their shares at a predetermined price, usually after a fixed period.
What are rights of redemption shares?
Redemption rights allow shareholders to sell their shares back to the company under specified conditions.
What is the redemption rights clause?
A redemption rights clause gives shareholders the right to require the company to buy back their shares under certain terms.
Key Takeaway
Redemption rights allow investors to sell their shares back to the company at a pre-agreed price.