For Callable we have terms and definitions in 2 topics. The topics are Finance and Investing.

Callable (Finance)

Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. Bonds are usually called when interest rates fall so significantly that the issuer can save money by issuing new bonds at lower rates.

Callable (Investing)

Under pre-stipulated conditions, a bond issue that may be redeemed by the issuer before its maturity date. If the issuer does call the issue, in full or part, the bondholder may receive a premium price. Issuers might call a bond when interest rates fall so drastically that it is worth the expense of issuing new bonds at the lower rates. U.S. government securities are not usually callable. However, 30-year Treasury bonds are an exception. They become callable after 25 years.

The term also pertains to preferred shares that may be redeemed by the issuing corporation.

See Also: Call; Call Price; Call Protection; Maturity Date; Redemption; Treasury Bond; US Government Securities

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