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Glossary Venture Capital / Term

Redemption Rights (Redeemable)

The right of the investor to require the company to repurchase the investor’s stock for a price specified in the corporate charter. Redemption rights usually are not exercisable until five years or longer after the investment. Redemption rights are rarely exercised, but they give investors leverage to ensure their investment will eventually become liquid through sale of the company if an IPO hasn’t occurred by a specified date.

Permanent link Redemption Rights (Redeemable) - Creation date 2020-03-10


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