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Zero coupon convertible security |
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Zero 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.Zero coupon convertible security Similar MatchesConvertible preferred stockConvertible preferred stockPreferred stock that can be converted into common stock at the option of the holder. See also: participating convertible preferred stock. Convertible 100Convertible 100Goldman 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 eurobondConvertible eurobondA eurobond that can be converted into another asset, often through exercise of attached warrants. Convertible bondConvertible bondA bond that can be converted into shares of the issuing company or its parent. 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. Further SuggestionsConvertible ArbitrageConvertible security Cash plus convertible convertible term insurance Mandatory convertibles High premium convertible debenture Convertible currency Convertible price Convertible bond |
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