Conversion feature(redirected from Convertible Options)
Specification of the right to transform a particular investment to another form of investment, such as switching between mutual funds or converting preferred stock or bonds to common stock.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The ability to change from one investment vehicle to another. For example, one may be able to switch between mutual funds in a fund family without incurring a penalty. Likewise, one may exchange a convertible bond to common stock in the issuing company. Sometimes, one even may be able to change an adjustable-rate mortgage into a fixed-rate mortgage. All of these examples describe a conversion feature on the investment vehicles.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved