Equal dollar swap(redirected from Equal Dollar Swaps)
Equal dollar swap
Equal Dollar Swap
The sale of common stock in a publicly-traded company and the use of the proceeds to buy as many convertible securities in the same or a similar company as the proceeds will buy. For example, one may sell 1000 shares of AT&T at $25 per share and use the money to buy as many convertible bonds in AT&T as can be had for $25,000. An equal dollar swap gives the investor greater flexibility for the same investment than simply owning the common stock. See also: Equal Shares Swap.