Convertible Hedge financial definition of Convertible Hedge. Convertible Hedge finance term by the Free Online Dictionary.

Convertible Hedge

A position in which one owns a convertible bond in a publicly-traded company while also selling short the common stock in the same company. The idea behind a convertible hedge is to profit regardless of whether the common stock increases or decreases in price. If the stock goes up, the investor loses on the short sale, but can profit by exercising the conversion option on the bond and selling the underlying stock. If the stock goes down, the investor profits from the short sale and does not exercise the conversion option, keeping the coupon payments from the bond.

Convertible hedge. When you use a convertible hedge, you buy a convertible bond, which you can exchange under certain circumstances for shares of the company's common stock. At the same time, you sell short the common stock of the same company.

As in any hedge, your goal is to make more money on one of the transactions than you lose on the other. For example, if the price of the stock falls, you're in a position to make money on the short sale while at the same time knowing that the convertible bond will continue to be at least as valuable as other bonds the company has issued.

On the other hand, if the stock gains value, you hope to be able to realize more profit from either selling the convertible or exchanging it for shares you can sell than it costs you to have borrowed and repaid the shares you sold short.

There are no guarantees this strategy or any other hedging strategy will work, especially for an individual investor who faces the challenge of identifying an appropriate security to hedge and the appropriate time to act.

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No references found	We remain confident that we will be successful in one or more of these prospects so we have also included a convertible hedge overlay to reduce dilution to our current TXCO stockholders. TXCO Resources Announces Private Placement of Preferred Stock and ... by Business Wire 0 million net cost of the convertible hedge and warrant transactions described below. Group 1 Automotive Announces Pricing of 2.25% Convertible Senior Notes by Business Wire The Company intends to use the net proceeds from the issuance of the Convertible Notes to repay a portion of its existing floor plan borrowings under its Credit Facility, which may be re-borrowed, to repurchase up to $50 million of its common stock, and to pay the net cost of the convertible hedge and warrant transactions. Group 1 Automotive Announces Offering of $250 Million of Convertible ... by Business Wire	Conversion Parity Conversion Parity Price Conversion Parity/Value Conversion Period Conversion Premium Conversion Price Conversion Privilege Conversion Ratio Conversion Value Convert Converted Put Convertibilidad de la moneda Convertibilite de la monnaie Convertibility Convertible Convertible 100 Convertible Adjustable Preferred Stock Convertible Arbitrage convertible ARM Convertible Bond Convertible Currency Convertible Debenture Convertible Eurobond Convertible Exchangeable Preferred Stock Convertible Floating-Rate note Convertible Hedge Convertible Preferred Stock Convertible Price Convertible Security Convertible Subordinate Note Convertible Term Convex Convexity convey Conveyance Conveyance Tax Cook the Books Cookie Jar Accounting Cooling Degree Day cooling off period Cooling-Off Period Cooling-Off Rule Coop cooperating broker Cooperativa Cooperativa de credito Cooperative cooperative apartment Cooperative Education Coordinate bancarie COP	Convertible and Subordinated Hybrid Equity-Linked Securities Convertible arbitrage convertible ARM convertible bond convertible bond convertible bond Convertible bonds Convertible bonds Convertible car Convertible car Convertible car Convertible car Convertible Currencies Convertible currency Convertible currency Convertible debenture Convertible debenture Convertible Debentures Convertible debt Convertible debt Convertible Debts Convertible Debts Convertible eurobond Convertible Eurobonds Convertible exchangeable preferred stock Convertible Exchangeable Preferred Stocks Convertible Floating Rate Note convertible floating-rate note Convertible Floating-Rate Notes Convertible Freighter Convertible Hedge Convertible Hedges Convertible Laser Designation Pod Convertible Mini Tower Convertible Money Convertible Money Convertible Money Convertible Money Convertible Options Convertible Participating Equity Certificates Convertible peso Convertible preferred stock Convertible Preferred Stocks Convertible price Convertible Prices Convertible Securities Convertible Securities convertible security convertible security Convertible Share Convertible Shares Convertible Static Compensator Convertible Stock Convertible Stocks Convertible Subordinate Note Convertible Subordinate Notes Convertible term convertible terms Convertible Unsecured Loan Stock Convertible-Term

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We remain confident that we will be successful in one or more of these prospects so we have also included a convertible hedge overlay to reduce dilution to our current TXCO stockholders.

TXCO Resources Announces Private Placement of Preferred Stock and ... by Business Wire

0 million net cost of the convertible hedge and warrant transactions described below.

Group 1 Automotive Announces Pricing of 2.25% Convertible Senior Notes by Business Wire

The Company intends to use the net proceeds from the issuance of the Convertible Notes to repay a portion of its existing floor plan borrowings under its Credit Facility, which may be re-borrowed, to repurchase up to $50 million of its common stock, and to pay the net cost of the convertible hedge and warrant transactions.

Group 1 Automotive Announces Offering of $250 Million of Convertible ... by Business Wire

Conversion Parity

Conversion Parity Price

Conversion Parity/Value