Definition of Call


search - explain Call

call -- (1) an option to buy a specific security at a specified price within a designated period. (2) to demand payment of a loan because of the failure of the borrower to comply with the terms of the loan. (3) to demand payment for stocks or bonds that have been purchased or subscribed. See "put."

another definition...

Call -- 1. A demand for early repayment of an obligation, or for the performance of a specific act under a contract.
2. A demand for the payment of money

3. The act of redeeming a bond earlier than the full term.

4. Short for "Call Option," a contract giving the holder the right to receive from the issuer a specified amount of a security at a specified price on or before a certain date.

5. Short for "Margin Call" - a call by a future or an options exchange, or by a broker to its clients, for additional collateral to that previously posted when the futures , options, or securities were purchased without posting their full value.

historic definition...

Call -- A call (on a stock) is a contract or written agreement binding the issuer to deliver to the holder stock named in the agreement within a certain time at a certain price if the holder shall so demand (or in other words, call for the stock). For example, A signs a promise to deliver 100 shares of some specified stock to B at 1OO at any time within 60 days if B makes a demand for it. A sells this promise to B for, say, $100. If within the 60 days the stock rises in price so that B can sell it at a profit B sells and calls on A to make delivery of the stock. The stock must go above 101 before there is a profit for B. If the stock declines or does not go above 101 B, of course, does not call for it and A makes $100 on his risk.

Also, a call is the act of calling off at an exchange or trading place the list of stocks and bonds or the different options or futures (months of delivery) in grain, cotton, coffee, etc. As the various stocks or commodities are called the buyers and sellers make their bids and offers.

The term call also is applied to the demand from the company issuing a stock or share that is not fully paid for a further payment or instalment from the holders; the word thus has come to be used loosely for the amount of the instalment or assessment. This use of the word is, of course, distinct from the term call when an option (privilege) is referred to.

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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".

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