What are redeemable shares?

Redeemable shares are a type of actions They differ from the ordinary ones in that they do not have a permanent character but have a defined time limit. This means that a company can sell shares for a period of time and get them back later.

The companies They carry out this type of sale of shares to obtain liquidity and financing for their business activity at specific times. When the shares are issued, the redemption conditions are agreed. These types of shares must be paid up in full at the time of issue.

Redeemable shares can be amortizefor two reasons:

  • Due to the end of the redemption period: if an issuer of shares has the right to redemption, it will not be able to obtain those shares again until after 3 years.
  • At the request of one of the parties with the right to demand the redemption of the shares: the redemption may be demanded by the shareholders who acquired the redeemable shares, by the company issuing the shares, or by both.


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