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English definition of “capital redemption reserve”

capital redemption reserve

noun [C]
 
 
ACCOUNTING, FINANCE, STOCK MARKET an amount of money that a company in the UK must keep when it buys back shares, and which it cannot pay to shareholders as dividends: The capital redemption reserve is a non-distributable reserve and represents paid up share capital.
(Definition of capital redemption reserve from the Cambridge Business English Dictionary © Cambridge University Press)
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