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 ?
Fewer Americans chose to drive with the sun on their faces and the wind in their hair the past couple of years, as an uncertain economy and other sporty alternatives curtailed convertible purchases, a leading provider of auto statistics said Monday.
Investors buying a convertible want the stock price to move up, but if the price goes nowhere, so will the bond issue.
Whatever the reason, convertible bond funds are worth considering.
But despite the difficult year for convertibles in 1994, the interest-rate increases took an even greater toll on straight bonds.
This tutorial outlines how convertibles are priced and also the factors that influence their prices.
Its convertible offering was a seven-year deal that could be redeemed after Feb.
The advent of maturing or callable convertible debt has set the stage for a ratings rebound for fallen angels and other distressed debt issuers, according to a new report released by Fitch Ratings.
Curiously, however, researchers have observed that firms often choose to keep their convertibles alive.
Michael Revy adds: "Joining efforts with Froley, Revy will allow me to combine the quantitative aspect of a convertible arbitrage strategy with the depth of fundamental research that this firm has developed over the years.
The Froley, Revy Convertible Bond Index tracks price performance of 50 representative convertible issues, with coupon interest reinvested to create a long-term, compounded total return.
The new e-mail publication capitalizes on two BridgeNews strengths: convertibles news coverage and daily newsletters.