Call Price

外汇网2021-06-19 13:32:09 103

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

Taobiz explains Call Price

For example, let's say the TSJ Sports Conglomerate issues 100,000 pferred 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 pferred stock if it wishes to discontinue payment of the pidend associated with the shares. It may choose to do this in an effort to increase earnings for common shareholders.

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