Simple English definitions for legal terms
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A noncallable security is a type of investment that cannot be redeemed by the issuer before its maturity date. This means that the investor is guaranteed to receive their interest payments and principal amount at the agreed-upon time. It is like a promise made by the issuer to the investor that they will not call back the security before the maturity date. Noncallable securities are considered less risky than callable securities because the investor knows exactly when they will receive their money back.
A noncallable security is a type of investment that cannot be redeemed or called back by the issuer before its maturity date. It is a type of security that provides a fixed income to the investor for a specific period of time.
For example, a noncallable bond is a type of bond that cannot be redeemed by the issuer before its maturity date. The investor will receive a fixed interest rate for the life of the bond, and the principal will be returned to the investor at maturity.
Another example of a noncallable security is a noncallable preferred stock. This type of stock provides a fixed dividend payment to the investor and cannot be redeemed by the issuer before a specific date.
Noncallable securities are considered less risky than callable securities because the investor is guaranteed a fixed income for a specific period of time. However, noncallable securities may offer a lower yield than callable securities.