|
|
Convertible price |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Convertible priceThe contractually specified price per share at which a convertible security can be converted into shares of common stock.Convertible price Similar MatchesZero coupon convertible securityZero coupon convertible securityA zero-coupon bond convertible into the common stock of the issuing company after the stock reaches a certain price, using a put option inherent in the security. Also refers to zero-coupon bonds, which are convertible into an interest bearing bond at a certain time before maturity. Cash plus convertibleCash plus convertibleConvertible bond that requires cash payment upon conversion. Convertible term insuranceConvertible term insuranceTerm 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. ConvertibleConvertibleConvertibles 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 preferred stockConvertible preferred stockPreferred stock that can be converted into common stock at the option of the holder. See also: participating convertible preferred stock. Further SuggestionsConvertible currencyConvertible Arbitrage Convertible eurobond Mandatory convertibles High premium convertible debenture Convertible bond convertible bond Convertible 100 Convertible security |
|
|
|