call price

Call Price

The price at which a bond or a preferred stock can be redeemed by the issuer. This price is set at the time the security is issued. Also referred to as "redemption price".

Notes:

For example, let's say the TSJ Sports Conglomerate issues 100,000 preferred shares with a face value of $100 with a call provision built in at $110. This means that if TSJ were to exercise its right to call the stock, the call price would be $110.

A company may exercise its right to call preferred stock if it wishes to discontinue payment of the dividend associated with the shares. It may choose to do this in an effort to increase earnings for common shareholders.

See also: Busted Convertible Security, Callable Preferred Stock, Contingent Convertibles - CoCos, Conversion Price, Convertible Bond, Convertibles, Dividend, Issuer, Mandatory Convertible, Preferred Stock

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Call price

The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a specified call date.

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call price

The price at which an issuer may, at its option, repurchase a security for redemption before the security's maturity. For bonds, the call price often declines over the life of the security until it reaches par value at maturity. Also called redemption price. See also extraordinary call, optional call, provisional call trigger price, sinking fund call.