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Redemption
Redemption is the process through which an investor exchanges an investment, share, unit or token according to the product's terms in order to receive cash, an underlying asset or another form of value. The exact process varies significantly between products.
Why it matters to you
Being able to buy an investment does not tell you how you eventually get your money back. Investors should understand who can redeem, what they receive, when redemption is available, what fees or restrictions apply and how long settlement takes. Redemption is also different from simply selling an investment to another investor on a secondary market.
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