call ¹

1. An option that permits its holder to purchase a specific asset at a predetermined price until a certain date. For example, an investor may purchase a call option on General Electric stock that confers the right to buy 100 shares at $35 per share until October 17. Calls are sold for a fee by other investors, who incur an obligation. Also called call option. Compare put 1.
2. An issuer's right to repurchase an issue of bonds at a predetermined price before maturity. The feature is used when interest rates fall, so that the bonds can be repurchased and a new, lower-rate issue sold. A call feature is normal for nearly all long-term bond issues, and it operates to the detriment of bond owners. See also call price, cleanup call, extraordinary call, optional call, sinking fund call.
3. Redemption of an issue of bonds before maturity by forcing the bondholders to sell at the call price.