combination security

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Combination Security

Any complex security that includes features of two or more basic securities. One of the most common combination securities is a convertible bond, which is a bond that may be exchanged for common stock. In other words, a convertible bond combines features of bonds (with a fixed return and repayment at maturity) with features of stocks (with equity in the issuing company and the possibility of a high return).

combination security

A security that combines the attributes of two or more individual securities. An example of a combination security is a convertible bond that is part debt and part common stock.
References in periodicals archive ?
To stay current, CPAs must understand macro-and microeconomics, modern portfolio theory, capital market theory, investment management, equity securities, securities analysis, options, futures and combination securities, fixed-income securities, investment policy development, manager and mutual fund selection, performance monitoring and asset allocation, in addition to tax planning, estate planning, retirement planning and risk management.