Convertible Subordinate Note

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Convertible Subordinate Note

A short-term, convertible bond that, in the event of the issuer's liquidation, has lower priority with respect to other debt. That is, a convertible subordinate note is a bond that may be changed into common stock at the discretion of the bondholder. If the issuer goes bankrupt and liquidates, one or more other debt securities must be repaid before the convertible subordinate note may be repaid. However, as with all debt securities, it has priority over all stock.
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