convertibles
securities convertible to common stock corporate bonds or shares of preferred stock that can be converted into common stock at a set price on set dates
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securities convertible to common stock corporate bonds or shares of preferred stock that can be converted into common stock at a set price on set dates
Convertible preferred stock (known as preference shares in the United Kingdom) gives the holder the right to exchange it at a fixed price for another security, usually common stock. The trick is knowing if, and when, to exercise that right.
Convertible securities (CSs) and other equity-linked instruments combine debt and equity. Depending on the terms and the issuer’s future performance, CSs can range from almost pure equity to an option-free bond. In option terms, a CS can be viewed in two ways. It amounts to a straight bond with a
By Roger Lister
The number of shares of common stock an investor will receive on converting a convertible security—a bond, debenture, or preferred stock.
The price per share at which the holder of convertible bonds, or debentures, or preferred stock, can convert them into shares of common stock.
Definitions of ’convertibles’ and meaning of ’convertibles’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’convertibles’ and other financial terms with our online QFINANCE Financial Dictionary.