Provisional Call Feature

Provisional Call Feature - A provisional call feature is a feature, in a convertible issue, to call the issue if the stock reaches a certain price level. This provisional call feature is of benefit to the issuer, as well as to the investor. Then at that price convertible stock is traded for common stock. A convertible issue is stock or bond that can be exchanged for another kind of stock (preferred stock can be exchanged for common stock for example). The issuer can be a company, investment trust or municipality (elected local government), offering securities to be sold to investors.