Drawing by lot, choose by lot

A special procedure for the redemption of a bond within its term. A certain number of numbers of the issue in question is publicly called by drawing lots (random draw: an act of selecting numbers randomly) and the drawn bond is redeemed at par. – Frequently, the debtors – i.e. the issuers as the issuers of the bond – reserve the right in the draw conditions not to call the amount to be redeemed as scheduled for the draw if they can buy the pieces on the market below par. Through measures such as, most notably, the dissemination of shocking news described in starvation, a company can induce a favorable redemption price. – See bond, bondless, starvation, draw insurance, lot bond, debenture, savings premium bond, draw.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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