Partial Redemption

Written By
Paul Tracy
Updated June 12, 2021

What is Partial Redemption?

A partial redemption occurs when an investor withdraws some of a security's value.
 

How Does Partial Redemption Work?

Let's say John Doe owns $200,000 of Treasury securities. He decides he's having a mid-life crisis and wants to buy a red sportscar. To get the money, he partially redeems his Treasury investment by withdrawing $75,000 of Treasury notes in his portfolio account.
 

Why Does Partial Redemption Matter?

A partial redemption is a partial liquidation of an account. They may occur in order to lock in profits, pay liabilities, or divert assets to another investment.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Partial Redemption.
Be the first to ask a question

If you have a question about Partial Redemption, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Partial Redemption, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Partial Redemption

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms