Convertible preferred stock

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Convertible preferred stock

Preferred stock that can be converted into common stock at the option of the holder. See also: participating convertible preferred stock.

Convertible Preferred Stock

A preferred stock that a stockholder may exchange, at any time after a waiting period, for common stock in the company issuing the bond. The number of shares one receives for each preferred share is determined when the convertible preferred stock is issued. A convertible preferred stock is a relatively low-risk investment because of the guaranteed dividends, but it affords the investor a great amount of leeway because he/she can exchange it for common shares, which have higher risk and higher returns. See also: Conversion ratio, Convertible bond.
References in periodicals archive ?
Upon the closing of the transactions, the total number of Hexcel's outstanding common shares including shares issuable upon conversion of both of the new convertible preferred stocks is expected to increase from approximately 38.
The series A and the series B convertible preferred stocks will be mandatorily redeemable on January 22, 2010.
Hexcel Corporation (NYSE/PCX: HXL) today announced that it has entered into definitive agreements providing for $125 million of new equity financing through the issuance for cash of a total of 125,000 shares of a series A convertible preferred stock and 125,000 shares of a series B convertible preferred stock.
Hexcel said that it has agreed to issue 77,875 shares of series A convertible preferred stock and 77,875 shares of series B convertible preferred stock to affiliates of Berkshire Partners LLC and Greenbriar Equity Group LLC (the "Investors") for a cash payment of approximately $77.