Provisional Call Feature


DEFINITION of 'Provisional Call Feature'

A feature of a convertible issue that allows the issuer to call the issue during the non-call period if the stock reaches a certain price.

BREAKING DOWN 'Provisional Call Feature'

For example, a convertible bond may allow a provisional call if the underlying common stock trades at 150% of the conversion price for 30 consecutive days.

  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Issuer

    A legal entity that develops, registers and sells securities ...
  3. Convertible Bond

    A bond that can be converted into a predetermined amount of the ...
  4. Mandatory Convertible

    A type of convertible bond that has a required conversion or ...
  5. Callable Bond

    A bond that can be redeemed by the issuer prior to its maturity. ...
  6. Conversion Price

    The price per share at which a convertible security, such as ...
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