Redeemable

Redeemable describes something that can be exchanged for value, either in the form of money, goods, services, or privileges. It often applies to financial instruments like bonds or coupons, highlighting the possibility of recovering an investment or receiving a reward. This characteristic implies a future fulfillment of an obligation, providing the holder with a tangible or intangible benefit upon meeting specific conditions, such as a deadline or purchase threshold. The term signifies a process where a loss is offset or a debt is settled. Essentially, it conveys the potential for restoration, compensation, or access to a pre-defined benefit associated with an action or item.

Redeemable meaning with examples

• The promotional coupon was clearly redeemable at any of the company's retail locations for a discount on select merchandise. Customers eagerly anticipated the chance to purchase the products with the reduced prices and the ability to maximize their savings. This sparked considerable excitement amongst shoppers, who recognized the potential of the offer to allow them to purchase items that may have been normally out of their budget.
• The bearer bonds issued by the government were redeemable after 10 years at face value, offering investors a secure return on their investment. People felt confident, with the promise that after a fixed period they would recover the initial capital investment in full, along with any accumulated interest. This acted as a significant factor in the success of the bonds, making them attractive to various types of investors.
• Points earned through the rewards program were redeemable for travel upgrades, allowing frequent flyers to enhance their experiences. Airlines provided loyal customers with the option to access additional amenities, such as spacious first class seats or complimentary access to airport lounges. Such benefits strengthened customer loyalty, as they were able to obtain real benefits based on the number of miles or points they accumulated.
• The company offered stock options to employees, making them redeemable at a future date if the company met certain performance targets, thus incentivizing productivity. The value that would come with options was a significant reward for their dedication, with the ability to participate in the financial success of the company. This structured their goals in line with the businesses long term success to increase profitability.