plus-cash convertible

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Plus-Cash Convertible

A convertible security in which the holder must pay a certain amount of money in addition to the exchange of the convertible in order to receive common stock in the underlying company. Because of this provision, plus-cash convertibles are susceptible to large price fluctuations.

plus-cash convertible

An unusual type of convertible security that requires a fixed cash payment in addition to surrender of the convertible in order to exercise the conversion privilege and obtain the shares of common stock. A plus-cash convertible has built-in leverage that produces relatively large price swings in the convertible compared with the underlying common stock.