Compulsory stock redemption means that the company redeems the shares from private equity investors in accordance with certain arrangements without the stock holder's application to sell the stock. This situation generally occurs with preferred stocks, because shareholders of preferred stocks usually sign mandatory redemption clauses, which is why the company can force redemption.

Compulsory redemption refers to the act of forcing the manager or fund registrant to redeem the fund shares held by investors in accordance with established business rules without investors making a redemption application. The situations in which fund products are forced to be redeemed can be divided into redemptions caused by normal operation of fund products and redemptions caused by termination of fund products. Among them, normal redemptions during the operation of fund products can also be subdivided into forced redemptions that occur when the balance of the remaining fund units in the account is less than the minimum number of units held and forced redemptions that occur by investors due to other reasons.

Compulsory redemption is one of the special forms of fund redemption. Fund redemption refers to a transaction in an open-end fund in which an investor directly or through an agency requests the fund management company to withdraw part or all of the fund's investment, and the repurchase money is remitted to the investor's account. Funds can be divided into broad and narrow senses. In the broad sense, they refer to a certain amount of funds established for a certain purpose, such as trust investment funds, provident funds, retirement funds, etc.; in the narrow sense, they refer to funds with specific purposes and uses. Funds mainly refer to securities investment funds. The income of securities investment funds comes from the future, and the income performance is inseparable from the performance of the underlying market, which carries certain risks.

According to different standards, securities investment funds can be divided into different types:

1. According to whether fund units can be added or redeemed, they can be divided into open-end funds and closed-end funds. fund. Open-end funds are not listed for trading (it depends on the situation). They are purchased and redeemed through banks, securities firms, and fund companies. The fund size is not fixed; closed-end funds have a fixed duration and are generally listed and traded on securities exchanges. Investors pass Fund units are bought and sold in the secondary market.

2. According to different organizational forms, they can be divided into corporate funds and contract funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; it is established by a fund manager, a fund custodian and an investor through a fund contract, which is usually called a contract fund. China's securities investment funds are all contractual funds.

3. According to the differences in investment risks and returns, funds can be divided into growth, income and balanced funds.

4. According to different investment objects, it can be divided into stock funds, bond funds, money market funds, futures funds, etc.