callable common stock

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Callable Common Stock

Common stock in a publicly-traded company that the issuing company may buy back from shareholders. This price schedule under which the issuer may buy back the stock is determined when the stock is issued and the price itself gradually increases over time. Callable common stock allows the company the flexibility to buy back shares at a price for which it can budget. See also: Self-tender offer, Puttable common stock.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.