Legal Definitions - noncallable security

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.