Convertible


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Convertible

A financial instrument that can be exchanged for another security or equity interest at a pre-agreed time and exchange ratio.

Convertible

A bond or preferred stock that may be exchanged for common stock in the company issuing the convertible at a certain ratio and/or a certain price. A convertible security gives the holder a great deal of flexibility. It reduces risk by guaranteeing a coupon payment or dividend while also allowing the holder to take advantage of a potential, larger return through the ability to convert the security. See also: Convertible option.

convertible

Convertible

A bond or preferred stock that may, under specified conditions, be exchanged for common stock or another security, usually of the same corporation.
References in periodicals archive ?
Many observers believe that convertibles' poor record in the last bear market was an aberration.
Given that the risk-shifting hypothesis does not postulate any ex ante private information on the part of firm insiders at the time of security issue (and, therefore, no differences in private information across putable and ordinary convertible issuers), the risk-shifting hypothesis predicts no difference in the announcement effects across the two types of security issues (H4A).
In the event the convertible bond shall be oversubscribed, the board of directors of the company shall resolve on the allocation between the subscribers.
In March this year, the new MINI Convertible launched, featuring a new design and technology upgrades including a fully-electric roof, front and rear LED lights and a 6.5-inch colour infotainment screen.
According to the company, this private placement has enabled it to place 26 new convertible instruments with a limited group of investors at a nominal value of SEK1,000,000 per convertible instrument through an accelerated book building procedure.
The Convertible Notes will be unsecured, unsubordinated obligations of the company and are expected to pay interest semiannually.
We argued that the economic growth would rise, primarily benefiting cyclical companies which dominate the convertibles market, and that global political and economic uncertainty would drive up equity volatility which benefits convertibles versus stocks due to the optionality of the asset class.
If a holder of 2010 Convertible Notes validly surrenders any of its 2010 Convertible Notes for conversion in accordance with the requirements of the indenture governing the 2010 Convertible Notes, Kaman will settle such conversion in cash, up to the principal amount of such 2010 Convertible Notes, and will settle amounts in excess of such principal amount, if any, in cash, shares of Kaman's common stock or a combination thereof, at Kaman's election.
We also have a perception that the investment bankers/advisors to the treasurers in this region put less emphasis on more complex structures such as convertible bonds.
(OTC PINK:BSEM) amended its Certificates of Designation for its Series A-1 Convertible Preferred Shares and its Series B-1 Convertible Preferred Shares.