provisional call trigger price

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Provisional Call Trigger Price

In convertible callable bonds, the price at which the underlying stock must trade in order to invalidate the call protection. For example, a convertible bond indenture may specify that if the share price of the underlying stock trades at 200% of the conversion price for a certain number of days, the issuer may call the bond before maturity during the period when it otherwise would be unable to do so.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

provisional call trigger price

The price at which the issuer of a convertible security may call the security during a period of call protection. For example, a convertible bond may allow a provisional call if the underlying common stock trades at 150% (the trigger price) of the conversion price for 30 consecutive days.
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.
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