Callable for Dummies
adjective
pronunciation: 'kɔləbəlWhat does Callable really mean?
Hey there! So, the word "callable" is a term used to describe a financial security or a bond. When a bond is "callable," that means that the issuer of the bond has the option to "call back" the bond before it reaches its maturity date.
Now, let me break it down a bit more. Imagine if you borrowed your friend's favorite toy for a month, but then your friend suddenly decides they want it back after two weeks. That's kind of like what it means for a bond to be "callable." The issuer of the bond (which is like the friend in this analogy) has the power to "call back" the bond, or in other words, pay back the bond early, before the agreed-upon maturity date.
So, when you hear the term "callable" in the context of finance, it just means that the issuer of the bond has the option to pay it back early. It's like they're saying, "Hey, I know we agreed on this date, but I might just want it back sooner."
I hope that helps you understand what "callable" means! If you have any more questions, feel free to ask.
Now, let me break it down a bit more. Imagine if you borrowed your friend's favorite toy for a month, but then your friend suddenly decides they want it back after two weeks. That's kind of like what it means for a bond to be "callable." The issuer of the bond (which is like the friend in this analogy) has the power to "call back" the bond, or in other words, pay back the bond early, before the agreed-upon maturity date.
So, when you hear the term "callable" in the context of finance, it just means that the issuer of the bond has the option to pay it back early. It's like they're saying, "Hey, I know we agreed on this date, but I might just want it back sooner."
I hope that helps you understand what "callable" means! If you have any more questions, feel free to ask.
Revised and Fact checked by Michael Davis on 2023-11-13 19:56:16
Callable In a sentece
Learn how to use Callable inside a sentece
- I can borrow this book from the library, but it's callable, so I have to return it when someone else wants to read it.
- The loan on my car is callable, meaning I have to pay off the remaining balance if I want to sell it.
- The teacher said my name is callable, so I need to raise my hand before speaking in class.
- My mom said my cellphone privileges are callable, so I have to give it to her at 9 pm every night.
- The lease on our apartment is callable, so we have to move out if the landlord wants to sell the building.
Callable Similar Words
Words that similar to the original word, but are not synonyms.