How Do You Spell REDEEMABILITY?

Pronunciation: [ɹɪdˈiːməbˈɪlɪti] (IPA)

Redeemability is a noun that comes from the verb "redeem." The spelling of this word can be explained using the International Phonetic Alphabet (IPA). The first syllable "re-" is pronounced as "riː," the "deem" part is pronounced as "diːm," and the ending "-ability" is pronounced as "əˈbɪləti." Altogether, the word is pronounced as "riːdiːməˈbɪləti." It refers to the quality or state of being redeemable, meaning that something can be restored or saved.

REDEEMABILITY Meaning and Definition

1. Redeemability refers to the characteristic or quality of being redeemable. It is a concept commonly used in financial and economic contexts, particularly in relation to financial instruments such as bonds or securities. Redeemability refers to the ability of an issuer to repurchase or redeem these instruments from their holders before their maturity date.

   When a financial instrument is redeemable, it means that the issuer has the option to buy back the instrument from its holder at a predetermined price or within a specified timeframe. For example, a bond may have a redeemable feature that allows the issuer to buy it back from the bondholder at a set price after a certain number of years.

   This characteristic of redeemability provides benefits to both the issuer and the holder of the financial instrument. It gives the issuer flexibility to manage debts or capital in accordance with market conditions. It also reassures investors that they have the opportunity to trade or sell their investment back to the issuer should they desire. Moreover, redeemability plays a significant role in determining the liquidity and marketability of financial instruments.

   The redeemability of a financial instrument is usually clearly defined in the terms and conditions of its issuance. Different financial instruments may have varying redeemability features, such as a fixed maturity date, call or put options, or conversion rights.

Common Misspellings for REDEEMABILITY

• Redeemibillity

Etymology of REDEEMABILITY

The word "redeemability" is derived from the root word "redeem", which comes from the Latin word "redimere". In Latin, "redimere" means "to buy back" or "to redeem". The suffix "-ability" has been added to the root word "redeem" to form the noun "redeemability", which refers to the quality or state of being redeemable.

Plural form of REDEEMABILITY is REDEEMABILITIES