Definition

Describing a type of bond or preferred stock that cannot be redeemed or called back by the issuer before a specific date or until it matures.

Example

Investors often prefer noncallable bonds because they provide guaranteed interest payments until maturity.

Conversation

Did you hear about the new investment options available?

Yeah, I read that some of them are noncallable bonds.

Exactly! I wonder how that affects their appeal to investors.

It seems like a good choice for long-term stability.

Synonyms & Antonyms

Root Explanation

Noncallable → It is formed from "non-" (meaning not) and "callable" (from the verb "call" meaning to summon or request). The word "noncallable" means not able to be called or summoned, often used in financial contexts to describe bonds that cannot be redeemed before maturity.

Memory Tip

Think of 'not' ('non-') being added to 'callable', which means something that cannot be summoned or redeemed.

Visually Confused Words