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Simple English definitions for legal terms

callable security

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A quick definition of callable security:

A callable security is a type of investment that can be redeemed or bought back by the issuer before its maturity date. It is a type of collateral or assurance given to a creditor to guarantee repayment of any money or credit extended to a debtor. A security can be an instrument that shows ownership rights in a company, creditor relationship with a company or government, or other rights. It can be a stock, bond, note, or other financial instrument. Securities have no intrinsic value and their value depends on the financial condition or future prospects of the issuer.

A more thorough explanation:

A callable security is a type of redeemable security. A security is collateral given or pledged to guarantee the fulfillment of an obligation. It can be an instrument that shows ownership rights in a company, creditor relationship with a company or government, or other rights. A callable security is a type of bond that can be redeemed by the issuer before it reaches maturity. This means that the issuer can "call" the bond back and pay the investor the principal amount plus any interest owed.

Let's say Company A issues a callable bond with a maturity of 10 years and an interest rate of 5%. After 5 years, interest rates in the market drop to 2%. Company A decides to call back the bond and issue a new bond with a lower interest rate. The investor who bought the callable bond will receive the principal amount plus any interest owed up until the call date.

This example illustrates how a callable security can benefit the issuer by allowing them to refinance at a lower interest rate, but it can also be a risk for the investor who may not receive the full return they expected if the bond is called back early.

callable preferred stock | called meeting

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glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
14:17
How are the vibes heading into thanksgiving yall?
HopefullyInLawSchool
14:17
@Law-Guy Im feeling kinda happy I applied YM to UCI hoping it helps (:
Wanna give some head
soap
14:18
Cornell
14:19
@HopefullyinLawSchool What's YM?
14:19
oh no
HopefullyInLawSchool
14:19
you mom
WorthlessAttractiveZombie
14:19
Ouch
HopefullyInLawSchool
14:19
your*
14:19
I fear I realized too late
babycat
14:20
another victim claimed
concorde
14:22
pwned
14:22
Might have to send in addendums for that
Dkk
14:26
No wave, so sad.
WorthlessAttractiveZombie
14:28
What are the odds that berk releases later today?
babycat
14:28
@Dkk: And here I thought you were a prophet. Smh.
14:33
@WorthlessAttractiveZombie: 4
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