Meaning REDEMPTION OR CALL: Right of the issuer to force holders on a certain date to redeem their convertibles for cash. The objective usually is to force holders to convert into common prior to the redemption deadline. Typically, an issue is not called away unless the conversion price is 15%-25% below the current level of the common. An exception might occur when an issuer's tax rate is high, and the issuer could replace it with debt securities at a lower after-tax cost
More terms such as Redemption or call in Dictionary R.
- Definition Reversing Trade:
- Examples Entering the opposite side of a currently held futures position to close out the position redemption or call definition.
- Definition Return Of Capital:
- Examples A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation redemption or call explain.
- Definition Replacement Cost Accounting:
- Examples An accounting method that includes as part of depreciation the difference between the original purchase price of an asset and the current replacement cost redemption or call what is.
- Definition Real Estate Appraisal:
- Examples An estimate of the value of property using various methods redemption or call meaning.
- Definition Ross, Stephen:
- Examples Developer of the Arbitrage Pricing Theory. Finance professor at MIT redemption or call abbreviation.
