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 ?
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.