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Exchangeable instrument |
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Exchangeable instrumentApplies mainly to convertible securities. Bond or preferred stock that may be exchangeable into the common stock of a different public corporation.Exchangeable instrument Similar MatchesExchangeableExchangeableApplies mainly to convertible securities. Means the issuer, if so stated, may substitute a convertible debenture for an existing convertible preferred with identical terms. Most often used when a corporation has an immediate need for equity capital and a low tax rate, and expects either or both conditions to change. This would make the debenture less attractive if the interest tax-deductibility is lost. |
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