Mandatory Redemption

Mandatory Redemption is an investor's right to require the company to repurchase some or all of an investor's shares at a stated price at a scheduled date that often precedes maturity. Usually, the purchase price can be the same as the Issue Price and may be increased by Cumulative Dividends, if there are any. Mandatory redemption may be automatic or may require a majority vote of the series of Preferred Stock that include a redemption right.

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