Definition

call price The amount at which the holder of preferred stock or bonds must sell the stock or bonds back to the issuing corporation. The call price is disclosed in the indenture. The call price might be the face or par amount plus one year's interest or dividend

Detailed Explanation

Callable bonds give the issuer the right to redeem the bond before maturity at a predetermined price, usually when interest rates decline.

Common Uses

- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.

Practical Example

- Example: Teams reference **call price** when defining terms in manuals, policies, or training materials.

Why This Term Matters

- Why it matters: Improves clarity and consistency across documentation and decision-making.