A callable stock, specifically a type of preference stock, that the issuer has the right to call in or redeem at a pre-set price after a defined date, i.e., during a set call period.

This stock is embedded with a call option (embedded call option) that allows the issuer to buy it back from the holders as per the terms specified in the issue (including call price, callability period, etc). The issuer can exercise the embedded option during a set period of time, after which the right lapses.