Conditional call

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Conditional call

Applies mainly to convertible securities. Circumstances under which a company can effect an earlier call, usually stated as percentage of a stock's trading price during a particular period, such as 140% of the exercise price during a 40-day trading span.

Conditional Call

A provision in a convertible security agreement outlining the circumstances under which the issuer of the convertible security may call it without allowing the holder to exercise the convertible option. Most of the time, the conditional call states that the issuer may call the convertible security if the price of the underlying stock is trading outside a certain range, such that exercising the convertible option will put an undue strain on the issuer.
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