Convertible eurobondA eurobond that can be converted into another asset, often through exercise of attached warrants.
Convertible term insuranceConvertible term insurance
Term life insurance which can be converted into cash value insurance. In the UK the equivalent (convertible term assurance) is conversion of term assurance into endowment assurance.
Cash plus convertibleCash plus convertible
Convertible bond that requires cash payment upon conversion.
Convertible priceConvertible price
The contractually specified price per share at which a convertible security can be converted into shares of common stock.
Convertibles 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 100
Goldman 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.
Further SuggestionsMandatory convertibles
Convertible preferred stock
Zero coupon convertible security
High premium convertible debenture