Meaning of “capital redemption reserve” in the English Dictionary

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"capital redemption reserve" in Business English

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capital redemption reservenoun [ C ]

uk us

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)