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.

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.
References in periodicals archive ?
Schulman announces regular quarterly and special cash dividend on convertible stock
305-7(b)(1) provides that a change in the conversion ratio of convertible stock or convertible securities under a bona fide and reasonable adjustment formula will not be considered to result in a deemed distribution of stock if it has the effect of preventing dilution of the interest of the holders of the convertible stock or securities (the antidilution exception).
IFC is considering to provide $3 million by subscribing to preferred convertible stock in the company.
Muscat: Al Omaniya Financial Services (AOFS), Oman's largest non-banking financial institution, said that the bonus shares of 10,104,389 (being stock dividend for the year 2012) have been listed on March 26, 2013 and 10,104,389 bonds being unsecured compulsorily convertible stock dividend bonds with annual coupon rate of five per cent have been listed as of April 9, 2013.
Seaside had purchased the said Series C Preferred Convertible Stock and the Company had received the final tranche of $2.
The move brings Liberty's holding in the company to just over 50%, if convertible stock owned is included.
Barclays holds BlackRock common stock and convertible stock representing a 19.
The state has accused Merrill of misrepresenting its financial condition in documents that New Jersey relied on in agreeing in January 2008 to purchase USD300m worth of preferred convertible stock.
In addition, GTC will return to Merrimack all the shares of Merrimack series C convertible stock that GTC holds.
When Harbinger purchased 30,000 shares of Salton's Series A Voting Convertible Stock in June, Salton's board of directors appointed David Maura, a consultant to Harbinger Capital Partners Master Fund, as a director.
09298 NTL shares, or a mix of NTL shares and convertible stock known as a "redeemable unit" plus 67p in cash.
This may be in emerging markets, distressed debt (bonds issued by companies desperate to avoid bankruptcy), convertible arbitrage (being `long' of, or owning, the convertible stock of a company and `short' of, or selling, the underlying shares) or -- the largest section -- ``long/short'', an equity fund which can be either long or short of particular shares.