callable preferred stock

Callable Preferred Stock

A type of preferred stock that carries the provision that the issuer has the right to call in the stock at a certain price and retire it. Also referred to as a redeemable preferred stock.

Notes:

You can think of preferred stock as a security somewhere in-between stocks and bonds.

See also: Callable Bond, Common Stock, Preferred Stock

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callable preferred stock

An issue of preferred stock that may be repurchased by the issuer at a specific price, usually par value or slightly above. The option to repurchase such stock is held by the issuer, not the investor. Calls can be expected when market rates of interest have fallen significantly below the yield on the preferred stock at the time the stock was issued.