Deferred equity

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Deferred equity

A common term for convertible bonds, which recognizes their equity component and the expectation that the bond will ultimately be converted into shares of common stock.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Deferred Equity

A convertible bond. One often refers to a convertible bond as a deferred equity because it is likely that the bondholder will exercise the convertible option and turn the bond into stock.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved