callable common stock

Callable Common Stock

Common stock that allows the issuer to call back the stock at a specific price.

Notes:

Typically, callable common stock is issued for a subsidiary company by the parent company. The parent company reserves the right to buy back the shares of the subsidiary company should it be strategically beneficial.

See also: Callable Bond, Callable Preferred Stock, Common Stock, Parent Company, Puttable Common Stock, Subsidiary

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callable common stock

Common stock of a subsidiary that is sold by the parent company and is subject to a stock purchase option agreement. The exercise price of the call generally steps up over time. Compare puttable common stock.