Stock Redemption

Home » CMA Glossary Term » Corporate Finance » Stock Redemption

Stock redemption, a corporate finance term, refers to a company’s repurchase of its own shares from shareholders, effectively reducing the number of outstanding shares in the market. This process can be executed for various strategic reasons, such as increasing shareholder value or altering the company’s capital structure. The stock redemption definition is crucial for understanding corporate strategies related to equity management and shareholder relations.

CMA Exam Academy 16-Week Accelerator Program