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Callability
CallabilityFeature of a security that allows the issuer to redeem the security prior to maturity by calling it in, or forcing the holder to sell it back. RELATED TERMS-------------------------------------- Security Piece of paper that proves ownership of stocks, bonds, and other investments. Issuer A financial institution or other organization responsible for supplying credit cards, debit accounts, checks, electronic tokens, and so on. Redeem To repay a bond, debenture, mortgage, etc. Maturity 1) The length of time until the principal amount of a bond must be repaid. 2) The end of the life of a security. Holder 1) A person in possession of a negotiable instrument such as a bill of exchange or promissory note. 2) A person who has made an opening purchase of an option and thus has acquired the rights to them. SIMILAR TERMS-------------------------------------- Call An option that gives the holder the right to buy the underlying futures contract. Call an option To exercise a call option. CALL Credit Union CALL is a credit union with head office in RICHMOND, VA Call date A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond for a specified call price. Call feature Part of the indenture agreement between the bond issuer and buyer describing the schedule and price of redemptions prior to maturity. Call loan A loan repayable on demand. Sometimes used as a synonym for broker loan or broker overnight loan. Call money rate Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service charge. Call option The ability of one person (who owns the call option) to buy something from the writer at a predetermined price during the time of the option. Call premium Premium in price above the par value of a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled maturity date. Call price The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a specified call date. Call protection A feature of some callable bonds that establishes an initial period when the bonds may not be called. Call provision An embedded option granting a bond issuer the right to buy back all or part of an issue prior to maturity. Call risk The combination of cash flow uncertainty and reinvestment risk introduced by a call provision. Call swaption A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. Call-Net Enterprises Call-Net Enterprises is one of Canada's largest companies. Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. Called away 1) Convertible: Redeemed before maturity. 2) Option: Call or put option exercised against the stockholder. 3) Sale: Delivery required on a short sale. CALLIDEN Group Limited CALLIDEN Group Limited is a large Australian company in the field of Insurance. Their Australian Stock Exchange (ASX) code is CIX. Calloway REIT Calloway REIT is one of Canada's largest companies. PREVIOUS AND NEXT TERMS-------------------------------------- Call price The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a specified call date. Call protection A feature of some callable bonds that establishes an initial period when the bonds may not be called. Call provision An embedded option granting a bond issuer the right to buy back all or part of an issue prior to maturity. Call risk The combination of cash flow uncertainty and reinvestment risk introduced by a call provision. Call swaption A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. Callability Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. Called away 1) Convertible: Redeemed before maturity. 2) Option: Call or put option exercised against the stockholder. 3) Sale: Delivery required on a short sale. Canadian agencies Agency banks established by Canadian Banks in the U.S. Cancel To void an order to buy or sell from the floor, or the trader/salesperson's scope. Cap An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM). We thank you for using the Financial Dictionary to search for Callability. If you have a better definition for Callability than the one presented here, please let us know by making use of the suggest a term option. This definition of Callability may be disputed by other professionals. Our attempt is to provide easy definitions on Callability and any other medical topic for the public at large.
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