Callable preferred stock is preferred shares in a business that can be bought back by the issuer at a certain price. The call price and other conditions are included in the indenture associated with the stock. A call feature is to the advantage of the issuer, since it can recall shares if the market interest rate declines, and replace it with lower-cost preferred stock or bonds. Conversely, this is a disadvantage for the investor, which may be forced to return a high-payout investment. Consequently, the existence of a call feature tends to put a cap on the market price of these shares.