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 ?
Like some other vehicle categories, convertibles have grown in number in the past several years.
2002-31 concludes that subjecting a contingent-interest convertible debt to the Regs.
Vanguard Convertible Securities (800-662-2739) has the longest history, averaging more than a 9.
Issue 1: Are the convertible preferred shares issued to an ESOP considered common stock equivalents?
A convertible is a perfect instrument if you want to bet on your own success over a period of time.
The final step in pricing the convertible might be the hardest: pricing the security itself and determining how much it will rise or fall under different market scenarios.
An issue of Convertible Preferred Equity allows potential investors to gain direct exposure to the Company whilst mitigating short-term risks.
Prudential Financial may redeem all or some of the convertible notes for cash at any time on or after December 13, 2007 at 100% of their principal amount plus accrued interest, if any, to but not including the redemption date.
General Cable Corporation expects to use the net proceeds from this offering to repay outstanding amounts of principal and interest under its senior secured credit facility as well as to pay the net cost of separate convertible note hedge and warrant transactions entered into in connection with this offering.
stated, "This restatement of results did not result from any new information relating to the convertible notes, any change in the terms or conditions of the convertible notes, or any other external event.
Since the amount of Convertible Notes tendered exceeded the maximum amount of Convertible Notes that the Offerors would accept, the Offerors pro rated the amount of Convertible Notes accepted from participating holders as described in the Exchange Offer Prospectus.
E[acute accent]The Convertible Exchange Offer is not conditioned on a minimum amount of Convertible Notes being tendered.