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A convertible security whose optioned common stock is trading in a middle range between the par value of the root security and the market value of the security it is convertible into, causing the convertible security to trade with the characteristics of both a fixed income security and a common stock instrument.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A security that combines features of two or more different investment vehicles. The most common example is a convertible bond, which is a bond that the holder may exchange for stocks. This combines the guaranteed payments of a bond with a stock's potential for equity.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A security that has features characteristic of two or more securities. A convertible bond, for example, is a hybrid security in that it has the features (that is, interest, maturity, and principal) of an ordinary bond but is heavily influenced by the price movements of the stock into which it is convertible.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.