Convertible preferred stock

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Convertible preferred stock

Preferred stock that can be converted into common stock at the option of the holder. See also: participating convertible preferred stock.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Notable transactions include acting for a modern and expanding web design company in relation to a private equity investment which involved a complex convertible share structure, and the purchase and subsequent re-sale of a large Midlands-based sports and social club.
Global Banking News-September 28, 2011--ANZ raises AUD1.34bn in convertible share offer(C)2011 ENPublishing - http://www.enpublishing.co.uk
By averaging out the four convertible share price levels, industry watchers estimated the 100 million shares will cost Prime View around NT$6.5 billion (US$196 million at US$1:NT$33) as soon as they are completely converted.
While the new 6 Series coupe and convertible share manufacturing facilities at the Dingolfing, Germany, plant (the 6 is more closely related to the 5 Series than the 7 Series), it was important that the 6 Series didn't just look like a two-door 5 Series.
Reports said that the airline had requested that the government provide a capital injection of AUD568m via notes or a convertible share issue, but both the carrier and the government have denied this.
Provided approval is granted and the convertible shares are issued, the convertible shares will automatically convert to 24.0 million ordinary shares 12 months after they are issued.
Preferred shares, common shares, convertible shares, series a, series b, warrants, etc.
The foregoing share price reflects Ithaca's value of CDN 841m (approximately USD 647m (including shares arising from exercising the convertible shares).