Convertible security

Convertible security

A convertible security is a security that can be converted into another security. Most convertible securities are bonds or preferred stocks that pay regular quarterly interest and can be converted into shares of common stock if the stock price appreciates to a predetermined level.

Types

See also



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Look at other dictionaries:

  • convertible security — see security Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. convertible security …   Law dictionary

  • Convertible Security — An investment that can be changed into another form. The most common convertible securities are convertible bonds or convertible preferred stock, which can be changed into equity or common stock. A convertible security pays a periodic fixed… …   Investment dictionary

  • Convertible security — A security that can be converted into common stock at the option of the security holder, including convertible bonds and convertible preferred stock. The New York Times Financial Glossary * * * convertible security convertible security ➔ security …   Financial and business terms

  • convertible security — A security that can be converted into common stock at the option of the securityholder; includes convertible bonds and convertible preferred stock. Bloomberg Financial Dictionary Bond or preferred stock that may be converted into another security …   Financial and business terms

  • convertible security — noun a corporate security (usually bonds or preferred stock) that can be exchanged for another form of security (usually common stock) • Syn: ↑convertible • Hypernyms: ↑security, ↑certificate …   Useful english dictionary

  • convertible security — A *bond or *security that can be converted into *common stock during a specified time period. The exercise of rights over convertible securities can *dilute a corporation’s common stock, and the effects of this dilution are normally factored into …   Auditor's dictionary

  • convertible security — noun A security that can be converted into another security …   Wiktionary

  • Busted Convertible Security — A convertible security that is trading well below its conversion value. The result is that the security is valued as regular debt because there is very little chance that it will ever reach the convertible price before maturity. This is a… …   Investment dictionary

  • security — se·cur·i·ty /si kyu̇r ə tē/ n pl ties 1 a: something (as a mortgage or collateral) that is provided to make certain the fulfillment of an obligation used his property as security for a loan b: surety see also …   Law dictionary

  • Convertible arbitrage — is a market neutral investment strategy often employed by hedge funds. It involves the simultaneous purchase of convertible securities and the short sale of the same issuer s common stock. The premise of the strategy is that the convertible is… …   Wikipedia

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