Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,726,617,644 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Convertible Preferred Stock

   Also found in: Wikipedia 0.01 sec.
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.

Convertible Preferred Stock

What Does Convertible Preferred Stock Mean?

Preferred stock that allows the holder to convert the preferred shares into a fixed number of common shares, usually any time after a predetermined date. Also known as convertible preferred shares.

Investopedia explains Convertible Preferred Stock

Most convertible preferred stock is exchanged at the request of the shareholder, but sometimes there is a provision that allows the company (or issuer) to force conversion. The value of convertible common stock ultimately is based on the performance (or lack of performance) of the common stock.

Related Terms:
Common Stock
Convertible Bond
Dividend
Preferred Stock
Premium



How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
5 million for newly issued convertible preferred stock and a commitment to provide $37.
EARNINGS PER SHARE FOR ESOP CONVERTIBLE PREFERRED STOCK
Under the terms of this private placement, GAM purchased 10,000 shares of Epoch's newly issued Series A Convertible Preferred Stock at a price of $1,000 per share.
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2009 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.