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In the bond markets, a call is an issuer's right to redeem bonds it has sold before the date they mature. With preferred stocks, the issuer may call the stock to retire it, or remove it from the marketplace.
In either case, it may be a full call, redeeming the entire issue, or a partial call, redeeming only a portion of the issue.
When a bank makes a secured loan, it reserves the right to demand full repayment of the loan - referred to as calling the loan - should the borrower default on interest payments.
Finally, when the term refers to options contacts, holding a call gives you the right to buy the underlying instrument at a specific price by a specific date. Selling a call obligates you to deliver the underlying instrument if the call is exercised and you're assigned to meet the call.Yahoo Finance - Cite This Source - This Definition
- Browse Related Terms: assignment, At-the-money, Automatic exercise, Call, Call option, Covered option, Exercise, Go short, Green shoe clause, In-the-money, Incentive stock option (ISO), Long position, Naked option, offset, Option, Option premium, Put option, Short position, Stock option, Strike price, Uncovered option, Writer
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