FIRST CALL DATE Meaning and
Definition
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First Call Date refers to the specific date on which a financial instrument, particularly bonds or preferred stocks, can be redeemed or called back by the issuer before its scheduled maturity. It signifies the earliest opportunity for the issuer to call back or redeem the instrument from the bondholders or shareholders at a predetermined price, often known as the call price.
Typically, the First Call Date is stipulated in the terms and conditions of the bond or preferred stock at the time of issuance. It allows the issuer to take advantage of favorable market conditions, such as declining interest rates or improved financial standing, by calling back the instrument and potentially reissuing it at a lower interest rate.
The First Call Date is crucial for investors as it provides an indication of when their investment may be subject to potential call risk, where the issuer may redeem the instrument before its maturity. Investors need to consider this date as it determines the potential return on their investment and the length of time they can expect to hold the instrument.
Furthermore, the terms of the instrument may include a call protection period, which specifies a specific minimum period before the First Call Date when the instrument cannot be redeemed. This provision provides some stability and security to investors, allowing them to receive interest payments or dividends for a certain period. Overall, the First Call Date serves as an essential element in assessing investment risks and rewards, enabling both issuers and investors to plan their financial strategies accordingly.
Common Misspellings for FIRST CALL DATE
- dirst call date
- cirst call date
- virst call date
- girst call date
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- furst call date
- fjrst call date
- fkrst call date
- forst call date
- f9rst call date
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- fiest call date
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- fifst call date
- fitst call date
- fi5st call date
- fi4st call date
- firat call date
- firzt call date
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