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What is "callable" stock?


By Vicente   Follow   Thu, 19 Jan 2012, 1:50am PST   3,517 views   12 comments   Watch (0)   Share   Quote   Permalink   Like   Dislike  

Forgive my ignorance and inattention, I just noticed my ATT is now showing as ATT.CL in E*Trade.

On a lark I thought to pick up a few more buckets of it in the AmeriTrade account I just opened. Yeah yeah, but they gave me 15,000 SkyPesos for opening it.

Anywho it comes back and won't let me buy it. I email support WTF? They come back with "it's callable stock now you have to phone a broker".

?????

Comments 1-12 of 12     Last »

thunderlips11   befriend   ignore   Thu, 19 Jan 2012, 2:23am PST   Share   Quote   Like   Dislike (3)     Comment 1

Search me. I've heard of callable bonds, but callable stock? That's a new one to me.

Vicente   befriend   ignore   Thu, 19 Jan 2012, 2:26am PST   Share   Quote   Like   Dislike (1)     Comment 2

Again, perhaps I wasn't paying proper attention when I thought I was buying a few bucks of "AT&T". I see now the more proper symbol for AT&T stock is simply T. So I'm not really sure what the ATT was that I bought. Maybe it was some sort of bond fund.

Anyhow I had made some dividend off it, so I'm moving on I guess. I think I'll dump it and switch to some KO & T for that pot of "safe" money.

uomo_senza_nome   befriend   ignore   Thu, 19 Jan 2012, 3:05am PST   Share   Quote   Like (1)   Dislike (1)     Comment 3

Vicente says

So I'm not really sure what the ATT was that I bought. Maybe it was some sort of bond fund.

Yeah I think it must have been a note issued by ATT. It reads on Stockcharts as AT & T Inc. Sr. Note 6.375 (yield I suppose?)

And it was probably a bond that was called by the issuer (meaning paid in full before maturity).

http://www.sec.gov/answers/callablebonds.htm

swebb   befriend   ignore   Thu, 19 Jan 2012, 10:40am PST   Share   Quote   Like (1)   Dislike     Comment 4

Vicente says

What is "callable" stock?

http://lmgtfy.com/?q=callable+common+stock&l=1

(sorry, I couldn't resist)

Patrick   befriend   ignore   Thu, 19 Jan 2012, 11:30am PST   Share   Quote   Like (1)   Dislike (1)     Comment 5

Wow, that's a new one for me too.

Makes me wonder what else is lurking in the fine print of trading.

thunderlips11   befriend   ignore   Thu, 19 Jan 2012, 12:02pm PST   Share   Quote   Like (1)   Dislike (1)     Comment 6

swebb says

http://lmgtfy.com/?q=callable+common+stock&l=1

(sorry, I couldn't resist)

How 'bout them Pineapples!

thomas.wong1986   befriend   ignore   Thu, 19 Jan 2012, 4:59pm PST   Share   Quote   Like   Dislike (1)     Comment 7

Patrick says

Wow, that's a new one for me too.
Makes me wonder what else is lurking in the fine print of trading.

Its not lurking anywhere but next to the maturity amt, rates and terms in the prospectus in easy to read words and format. Many cheap finance books can educate you on this. Fact some US Treasury Bonds were also Callable. Callable vs non-Callable have a different market price.

Nothing evil going on here...

Preferred Stock has callable features..

http://en.wikipedia.org/wiki/Preferred_stock#Features

Preferred stock is a special class of shares that may have any combination of features not possessed by common stock.

The following features are usually associated with preferred stock:[4]
Preference in dividends.
Preference in assets in the event of liquidation.
Convertible into common stock.
Callable at the option of the corporation.
Nonvoting.

Yep... its a Bond... changed NYSE listing from ATT to ATT-CL

http://finance.yahoo.com/q?s=ATT&ql=1

Changed Ticker Symbol
ATT is no longer valid. It has changed to ATT-CL.

http://finance.yahoo.com/q?s=ATT-CL

AT&T Inc. Senior Note 6.375 (ATT-CL) -NYSE 25.45

Trader Update

(ATT) Called for Redemption on the NYSE
https://markets.nyx.com/nyse/trader-updates/view/10543
08:30 ET 17 Jan 2012

Market: NYSE Category: Call for Redemption

Effective immediately, the 6.375% Senior Notes due February 15, 2056 of AT&T INC. shall be dealt in as called issues (ATT CL). This issue will be called for redemption on February 15, 2012 at $25.00 per share plus any accrued dividends/distributions. All orders for uncalled stocks (ATT) are cancelled. NYSE Ticker Symbol: ATT CL Post: 6 Section: L

bostongraf   befriend   ignore   Thu, 26 Jan 2012, 1:30am PST   Share   Quote   Like (1)   Dislike (2)     Comment 8

Well, this has taken me by surprise just a bit. I am very (VERY) new to the game, and happen to pick up a couple shares of ATT (now ATT.CL) when it was up at $26.79.

It seems like I am reading that AT&T (T) is now buying them back from me at a price of $25 per share? Is that correct?

If so, that is a big lesson in buying shares that are actually subsidiaries...yikes.

Thanks for any answers.

H2G   befriend   ignore   Mon, 30 Jan 2012, 3:52am PST   Share   Quote   Like (1)   Dislike (1)     Comment 9

I also bought some of this thinking it was AT & T stock at 24.89 on etrade. Since I made some dividand on it I just bought some more today at 24.99. If they are buying it back I wonder they will pay me what I paid or 25.00 each?

nrwegman   befriend   ignore   Tue, 14 Feb 2012, 10:35pm PST   Share   Quote   Like (2)   Dislike (1)     Comment 10

So, if I owned this on 2/15/12 and now my Etrade account shows $0 for this and a loss of 100%, will that money be put back into my account or is that really a loss?

thunderlips11   befriend   ignore   Wed, 15 Feb 2012, 1:49am PST   Share   Quote   Like (2)   Dislike (1)     Comment 11

Interesting stuff, thanks all.

Paco   befriend   ignore   Fri, 17 Feb 2012, 1:04pm PST   Share   Quote   Like (2)   Dislike     Comment 12

happened to me too ... thanks for the post, now I understand. Pretty dumb that they used the symbol ATT, in this day and age when so many average folks are trading. I'm a CPA and somewhat savvy investor, but I didn't see this one

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