   
|
|
Call Price
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
The call price is the price at which an issuer of a security can redeem that security. The call price is set at the time of issuance. The security with a call price can be either a callable bond or a preferred stock. The call price is also called the redemption price. The call price at the time a security is redeemed usually is at a premium above the market price. A company might still be willing to pay a premium of some sort based on the spread between the market price and the call price, because it may still be advantageous for the company to do so. For example, if interest rates decline a company may decide to redeem a callable bond for the call price and issue a new bond at a lower rate.
Rate this call price definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: option premium, deferred revenue, annual return, per diem, inflation, 144a, Zero Cost Collar, current ratio, 1035 exchange, labor relations, retained earnings, 401a, liquidity ratio, irrevocable trust, Key Rate Duration, risk management, debt service coverage, balance sheet, deferred tax, quality assurance, dividends payable, class C shares, ex-dividend date, stock split, ex-dividend, 1031 exchange, command economy, reverse mortgage, stock market close, EBITDA, margin rate, LIBOR, required rate of return, FICO score, VIX, limit order, APR, minority interest, open position, implied volatility, average price per share, phantom income, FTSE, real GDP, diluted share, wholly-owned subsidiary, in escrow, cancelled check, covered put
|
|
| |