Accounting Dictionary - Letter C

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Callable preferred stock
(also called redeemable preferred stock) can be liquidated for a specific price at the option of the corporation. The call premium is the difference between the face value and the call price. A premium is usually demanded because the investor may not like being forced to get rid of his investment. Some redeemable stock is required to be redeemed on a specific date, which makes it more like a bond.
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