What is "callable" stock?


By Vicente   Follow   Thu, 19 Jan 2012, 9:50am   2,813 views   12 comments
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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".

?????

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  1. thunderlips11


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    1   10:23am Thu 19 Jan 2012   Share   Quote   Permalink   Like   Dislike (3)   Protected  

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

  2. Vicente


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    2   10:26am Thu 19 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)  

    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.

  3. uomo_senza_nome


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    3   11:05am Thu 19 Jan 2012   Share   Quote   Permalink   Like (1)   Dislike (1)  

    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

  4. swebb


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    4   6:40pm Thu 19 Jan 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Vicente says

    What is "callable" stock?

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

    (sorry, I couldn't resist)

  5. Patrick


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    5   7:30pm Thu 19 Jan 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   Protected  

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

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

  6. thunderlips11


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    6   8:02pm Thu 19 Jan 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   Protected  

    swebb says

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

    (sorry, I couldn't resist)

    How 'bout them Pineapples!

  7. thomas.wong1986


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    7   12:59am Fri 20 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)  

    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

  8. bostongraf


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    8   9:30am Thu 26 Jan 2012   Share   Quote   Permalink   Like   Dislike (2)  

    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.

  9. H2G


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    9   11:52am Mon 30 Jan 2012   Share   Quote   Permalink   Like   Dislike (1)  

    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?

  10. nrwegman


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    10   6:35am Wed 15 Feb 2012   Share   Quote   Permalink   Like (1)   Dislike (1)  

    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?

  11. thunderlips11


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    11   9:49am Wed 15 Feb 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   Protected  

    Interesting stuff, thanks all.

  12. Paco


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    12   9:04pm Fri 17 Feb 2012   Share   Quote   Permalink   Like (1)   Dislike  

    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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