Convertible Securities (Such As Debentures Or Preferred Stock)
Convertible securities combine aspects of both stocks and bonds, thus creating a truly 'best of both worlds' investment.
First Boston Convertible Securities Index
This is a performance benchmark for convertible accounts. This index generally includes 250 to 300 issues.
BOND VALUE (FOR CONVERTIBLE SECURITIES) - See investment value (for convertible bonds).
BOND YEAR OR FISCAL YEAR - The 12-month accounting period used in connection with an issue of bonds. Bo...
Convertible Securities
Securities that permit the holder to acquire an equity interest by exchanging the original security for a different security.
Convertible Securities: Bonds or preferred stock that can be exchanged for a certain number of shares of common stock in the same corporation.
4- Convertible Securities (CVs)
Convertibles refer to two forms of similar investments: convertible bonds and convertible preferred stocks.
Convertible securities have a par value, and their yield is quoted as a percentage of par. Each security may be converted into a fixed number of common shares. That number is the security's conversion ratio.
Convertible securities (CSs) and other equity-linked instruments combine debt and equity. Depending on the terms and the issuer's future performance, CSs can range from almost pure equity to an option-free bond.
Convertible Securities
Corporate securities (usually preferred stock or bonds) that are exchangeable into a fixed number of shares of common stock at a stipulated price.
CONVERTIBLE SECURITIES FUNDS A fund that invests primarily in convertible bonds and/or convertible preferred stocks.
Convertible Securities Hedge Funds - Generally look to purchase the bonds or preferred securities and sell common shares against these long positions. The intent is to hedge interest or dividend paying securities with low or no dividend common shares.
mandatory convertible securities
Types of convertible bonds that have required conversion or redemption features. One type of mandatory convertible requires the holder to exchange the bonds for common stock at maturity.
Examples of convertible securities include convertible bonds, which can be exchanged for shares of a company'' stock, and convertible preferred stock, which can be exchanged for shares of common stock.
Apply mainly to convertible securities. Increment of bonds that trade in portions of $1000 minimum. Not all bonds can be traded in "pieces," and the increments can vary.
Pie model of capital structure ...
Apples mainly to convertible securities. Difference between how much common stock one party must sell and the other wishes to buy for the same amount of convertible in a swap.
Overall FTC limitation ...
Applies mainly to convertible securities. Interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security.
Mainly applies to convertible securities. A practice, usually of buying a convertible bond and shorting a percentage of the equivalent underlying common shares to create a positive cash flow position (with expected returns above the riskless rate) in ...
Applies mainly to convertible securities. Means the issuer, if so stated, may substitute a convertible debenture for an existing convertible preferred with identical terms.
CallableApplies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually.
" Percentage premium Applies mainly to convertible securities. Premium over parity of a convertible bond divided by parity. Perfect capital market A market in which there are never any arbitrage opportunities.
Set up Mainly applies to convertible securities. Arbitrage involving going long the convertible and short a certain percentage of the underlying common. Antithesis of Chinese hedge.
Equal shares swap Applies mainly to convertible securities. Selling the underlying common and reinvesting the proceeds in as much of the convertible as can be converted into the number of shares of common just sold. See equal dollar swap.
The law extends to a repurchase by the issuer or to a purchase by participants in a new issue of convertible securities already on the market and convertibile into the securities being offered.
In 2010, the per share figures were up 26% despite increased diluted shares as the company sold shares and also certain convertible securities came "in the money" with the share price rise.
A way of measuring the quality of a company's earnings if all of its convertible securities were exercised.
Convertible arbitrage - exploit pricing inefficiencies between convertible securities and the corresponding stocks.
Fixed income corporate - fixed income arbitrage strategy using corporate fixed income instruments.
Applies mainly to convertible securities. Procedure whereby the Federal Reserve Bank of New York sells government securities to a nonbank dealer against payment in federal funds.
The price at which convertible securities, such as bonds and preferred stock, can be converted into common stock at a set conversion ratio.
Conversion Price: The price at which convertible securities, such as bonds and preferred stock, can be converted into common stock at a set conversion ratio.
Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, ...
It may also choose to resell the shares or use them to meet the demand for shares from holders of convertible securities. The company may choose to repurchase if it has cash available, as an alternative to investing it in expanding the business.
This is an investor protection provision which specifies that options and convertible securities may be exercised relative to the lowest price at which securities were issued since the issuance of the option or convertible security.
Applies mainly to convertible securities and international equities. Antithesis of net parity. For the price of a convertible, including accrued interest.
Yield differential/pickup
Mainly applies to convertible securities. Graph showing the term structure of interest rates by plotting the yield of all bonds of the same quality with maturities ranging from the shortest to the longest available.
Only ordinary shares are considered, and any preference shares, loan stock or other convertible securities must be converted beforehand to be considered. A minimum of 15% of shares must be traded on the stock exchange at any given time.
Dilutive securities are convertible securities the assumed conversion of which would result in a reduction in proportional ownership and which has the effect of decreasing earnings per share.
Direct cost ...
Noncumulative
Definition: [crh] Applies mainly to convertible securities. Type of preferred stock on which unpaid or Omitted dividends do not Definition: F="/?rd=accrue"accrue. Omitted dividends are, as a rule, gone forever.
Earnings per share expressed as if all outstanding convertible securities
and warrants have been exercised.
Futures price
The price at which the parties to a futures contract agree to transact on the settlement date.
Effect on earnings per share and book value per share if all convertible securities were converted and all warrants and stock options were exercised.
Distributions
The income or capital gain made by a mutual fund that is paid to the fund's investors.
Equity Value = Market capitalization + Amount that in-the-money stock options are in the money + Value of equity issued from in-the-money convertible securities - Proceeds from the conversion of convertible securities ...
Earnings per common share calculated on the assumption that all convertible securities are converted into common shares, such as convertible preferred shares, convertible debentures, stock options (under employee stock-option plans) and warrants.
The additional yield earned by holding a company's convertible securities rather than its common shares.
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Share ...
(3) In trading options, convertible securities, and futures, arbitrage techniques can be applied whenever a strategy involves buying and selling packages of related instruments.
Diluted Earnings - A calculation that includes stock options, warrants and convertible securities to calculate per-share earnings.
yield advantage The different between a corporation's convertible securities and its dividend yield on common stock yield burning An illegal transaction in which an underwriter uses excessive markups on bonds...
This is based on prospectus disclosure, in reliance of one or more of the exemptions under applicable securities laws, including the issuance of shares, units, warrants, convertible securities, or debt, but not including a rights offering, ...
Securities that these portfolios purchase include: debt and equity securities, convertible securities, and securities issued by real estate investment trusts (REITs) and REIT-like entities.
Fully diluted earnings per share: The earnings per share if all convertible securities were converted into common stock.
Fully paid securities: Securities held in a cash account for which full payment has been made.
Equity A type of security representing ownership in a corporation. Common stock, preferred stock and convertible securities are all equity securities. (Debt securities do not represent ownership.) ...
Computing earnings on a dilutive share basis involves consideration of three types of securities: options and warrants, contingent shares, and convertible securities.
A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities.
Dilution levy ...
Swallowing Poison Pills Strategy The target company might issue convertible securities which are converted into equity to deter the efforts of offeror and such conversion dilutes the bidder's shares and discourages acquisition.
Equities: Stock shares that represent ownership of a corporation. Included in this category are publicly traded common stocks, rights, warrants, convertible securities and American Depository Receipts.
Sometimes referred to as "total return funds," a balanced fund seeks a blend of growth and income by investing in stocks, bonds and convertible securities.
Apart from a PUBLIC ISSUE, equity shares may originate through an issue of BONUS SHARES, CONVERTIBLE securities, WARRANTS, GDRS, etc. An alternative term that is sometimes used is 'COMMON STOCK' or simply, 'STOCK'.
Lobster Trap - A strategy used by a target firm to prevent a hostile takeover. In a lobster trap, the company passes a provision preventing anyone with more than 10% ownership from converting convertible securities into voting stock.
yield advantage: The yield on a corporation's convertible securities minus the dividend yield on its common stock.
We structure innovative primary and secondary market transactions that are designed to solve client's financing and risk management challenges through the use of convertible securities and various financial derivatives.
busted convertibles Convertible securities that trade like fixed income investments because the market price of the common stock that they convert to has fallen so low as to render conversion meaningless.
Fully diluted earnings per shares Earnings per share expressed as if all outstanding convertible securities and warrants have been exercised.
 See also: Expense, Banks, Values, Prepayment, Short Sale
  
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