At the time a callable bond or callable preferred stock is issued, the price at which it is agreed that the issuer may redeem it before maturity.

Also known as the redemption price. A company may exercise its call option on a preferred stock in order to increase earnings for common shareholders by ceasing to pay the dividend associated with the shares. Despite the market value of the shares at the time when the issuer decides to call the stock, for the transaction the stock is valued at the call price, as agreed.