Redeemable capital

Capital:-
A business account that records how much the owners or stockholders have
invested in a company.

Redeemable:-
Redeemable means Some thing, which can be exchanged for money.

Redeemable capital:-
Redeemable capital means the temporary Shares that are issued
for needs of urgent funds in a Company.

Some times a company that is not interested to increase its permanent

capital then they issue the temporary shares for public, Which is called the
redeemable capital to reach its urgent needs for funds.

The company issues these shares for a specific time period. When the
needs of the company are completed then they receive their shares form
public again and returned their cash.

The people accept these shares because they are more preference share
capital and have a high rate of interest .The dividend of the shares more
preferable then the dividend of the fixed capital.