If a security is "redeemable", it means that:

The concept of a "redeemable" security refers to the ability of the issuer to buy back the security from the investor, often at a predetermined price or at its net asset value. This feature is commonly associated with certain types of investments, such as mutual funds or specific types of bonds, where investors have the right to redeem their shares for cash.

When a security is redeemable, it creates flexibility for investors, allowing them to receive their principal back directly from the issuer, rather than selling it on the open market. This distinction is important because it emphasizes the relationship between the issuer and the investor and highlights the guaranteed liquidity that redeemable securities can offer under certain conditions.

In contrast, while the other choices may involve aspects of securities, they do not accurately capture the essence of what being "redeemable" means. For instance, selling a security in the open market reflects liquidity but does not imply the issuer's right to repurchase. Similarly, actively managed securities relate to how investment decisions are made rather than the mechanics of redemption. Lastly, the statement about not being able to purchase from a broker-dealer speaks to accessibility rather than the redeeming process itself. Understanding the redeemable characteristic provides valuable insight into how some investments operate and the