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Convertible |
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ConvertibleConvertibles 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.Similar MatchesMandatory convertiblesMandatory convertiblesA debt instrument that is exchangeable at some point for equity in the form of common stock or a new issue. 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. Convertible eurobondConvertible eurobondA eurobond that can be converted into another asset, often through exercise of attached warrants. Further SuggestionsHigh premium convertible debentureconvertible bond Convertible security Zero coupon convertible security Convertible preferred stock Convertible bond convertible term insurance Convertible 100 Convertible Arbitrage |
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