Convertible security


 

Home
Site Map
Add Term
Search
About Us
Contributors

Convertible security

A security that can be converted into common stock at the option of the securityholder; includes convertible bonds and convertible preferred stock.



Convertible security

Similar Matches

Convertible

Convertible

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 100

Convertible 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.


Convertible term insurance

Convertible 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 convertible

Cash plus convertible

Convertible bond that requires cash payment upon conversion.


Zero coupon convertible security

Zero coupon convertible security

A 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.


Further Suggestions

Convertible bond
Mandatory convertibles
Convertible preferred stock
Convertible currency
Convertible eurobond
convertible bond
Convertible Arbitrage
Convertible price
High premium convertible debenture


 
All rights Reserved. Do not copy without permission. T4 Innovations Ltd