Home > Term: capital redemption reserve
capital redemption reserve
A fund which exists both on the financial statements of a company and also as part of the company's internal accounts. A business with a capital redemption reserve fund is legally mandated by the U.S. Securities and Exchange Commission to make capital redemption for certain transactions acting as a hedge against capital reductions.
- Part of Speech: noun
- Industry/Domain: Accounting
- Category: General accounting
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- anton.chausovskyy
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