A preferred share that is subject to callability/ redemption. This hybrid preferred share may provide for the right of the issuer to recall (i.e., buy back) the shares at a specified date and for a preset price. Likewise, a preferred share may be redeemable at the holders’ discretion (in which case it is referred to as puttable preferred share), provided that the issuer has sufficient funds to pay off the redemption amount. An issuer-redeemable preferred share is advantageous to the issuer because the capital raised whereby will be available as long as the issuer needs and can be paid off whenever the issuer deems fit. The redemption price is usually slightly above the issuance price. For example, the redemption price for a $100 par value preferred share might be $103.

It is also known as a callable preferred share.