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What is "callable" stock?

By Vicente   2012 Jan 19, 1:50am   ↑ like   ↓ dislike   4,491 views   12 comments   watch (0)   share   quote  

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   WaPoIsHitler Lipsovitch (56/56 = 100% civil)   2012 Jan 19, 2:23am  ↑ like   ↓ dislike (3)   quote   top   bottom   home   share  

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

2   Vicente   2012 Jan 19, 2:26am  ↑ like   ↓ dislike (1)   quote   top   bottom   home   share  

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   2012 Jan 19, 3:05am  ↑ like (1)   ↓ dislike (1)   quote   top   bottom   home   share  

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   2012 Jan 19, 10:40am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

Vicente says

What is "callable" stock?

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

(sorry, I couldn't resist)

5   Patrick (423/423 = 100% civil)   2012 Jan 19, 11:30am  ↑ like (1)   ↓ dislike (1)   quote   top   bottom   home   share  

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

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

6   WaPoIsHitler Lipsovitch (56/56 = 100% civil)   2012 Jan 19, 12:02pm  ↑ like (1)   ↓ dislike (1)   quote   top   bottom   home   share  

swebb says

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

(sorry, I couldn't resist)

How 'bout them Pineapples!

7   thomas.wong1986   2012 Jan 19, 4:59pm  ↑ like   ↓ dislike (1)   quote   top   bottom   home   share  


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   2012 Jan 26, 1:30am  ↑ like (1)   ↓ dislike (2)   quote   top   bottom   home   share  

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   2012 Jan 30, 3:52am  ↑ like (1)   ↓ dislike (1)   quote   top   bottom   home   share  

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   2012 Feb 14, 10:35pm  ↑ like (2)   ↓ dislike (1)   quote   top   bottom   home   share  

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   WaPoIsHitler Lipsovitch (56/56 = 100% civil)   2012 Feb 15, 1:49am  ↑ like (2)   ↓ dislike (1)   quote   top   bottom   home   share  

Interesting stuff, thanks all.

12   Paco   2012 Feb 17, 1:04pm  ↑ like (2)   ↓ dislike   quote   top   bottom   home   share  

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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