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# What is a Share Redemption?

Redemptions are when a company requires shareholders to sell a portion of their shares back to the company. For a company to redeem shares, it must have stipulated upfront that those shares are redeemable.

Reference: [Investopedia Repurchases and Redemptions](https://www.investopedia.com/ask/answers/13/difference-between-redemption-and-repurchase-of-shares.asp)