Provisional Call Feature

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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.

INVESTOPEDIA EXPLAINS'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.

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RELATED FAQS
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  2. What is a 'busted' convertible bond?

    In finance, a convertible bond represents a hybrid security that offers debt and equity features and risks. While a convertible ... Read Full Answer >>
  3. Who or what is backing municipal bonds?

    Municipal bonds are backed by dedicated taxes or revenue sources related to specific projects, or by the full faith and credit ... Read Full Answer >>
  4. What are the differences between debt and equity markets?

    The basic differences between the debt and equity markets include the type of financial interest they represent, the way ... Read Full Answer >>
  5. What do cities do with the funds generated from municipal bonds?

    Funds generated from the sale of municipal bonds may go to provide for unspecified, general government financial needs, or ... Read Full Answer >>
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