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Convertible bond |
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Convertible bondGeneral debt obligation of a corporation that can be exchanged for a set number of common shares of the issuing corporation at a prestated conversion price.Convertible bondA bond that can be converted into shares of the issuing company or its parent.Similar MatchesConvertibleConvertibleConvertibles are bonds issued by companies which can be converted into ordinary shares or preference shares at a given price at a future date. For example a convertible might pay 6% in income, and give the holder the right to 5 ordinary shares for every £20 of bond value.They are a popular means of raising capital when interest rates are high, because the interest which the company has to pay on them is lower than on an unconvertible bond (the option to convert is deemed to be worth something to the holder).From an investor's point of view, convertible bonds can be attractive if the company's stock is volatile because they provide some of the security of a bond whilst at the same time allowing the investor to convert to shares if the company's stock rises. Convertible 100Convertible 100Goldman Sachs index of the 100 convertibles of greatest institutional importance. Weighted by issue size, it measures the performance of its components against that of their underlying common stock and against other broad market indexs as well. Convertible priceConvertible priceThe contractually specified price per share at which a convertible security can be converted into shares of common stock. Cash plus convertibleCash plus convertibleConvertible bond that requires cash payment upon conversion. Convertible currencyConvertible currencyA currency that can legally be exchanged for another or for gold. In times of crisis, governments sometimes restrict such exchange, giving rise to black market exchange rates. Further SuggestionsConvertible ArbitrageZero coupon convertible security Convertible preferred stock High premium convertible debenture Mandatory convertibles Convertible eurobond convertible term insurance Convertible security |
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