Definition - What does Redeemable Preferred mean?
Redeemable preferred is a type of share or stock that grants the issuer the right to buy back the stock on a specified date or thereafter. These stocks are also known as callable preferred stock.
Divestopedia explains Redeemable Preferred
Redeemable preferred stock is redeemed after the issuer serves notice of intent to redeem the shares from the shareholders at a price set at the time when the shares were issued. The redemption value is usually higher than the par value; however, the price will decline closer to the par value over time. The shareholder is paid the redemption price plus any dividends due. The higher the redemption price, the better it is for the investor in the event that the issuer redeems the shares within a short period of time after issuance.
Issuers of preferred stock may pay for the redemption value by cash or choose to issue other shares like common stock or another preferred stock.