Convertible security

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. ...

convertible security
types of stocks and bonds that can be voluntarily converted into capital stock at a later date. Examples are convertible bonds and convertible preferred stock. The conversion ratio (rate) determines how many shares will be issued.

A convertible security or convertible is a hybrid security with a provision for the convertible to be exchanged for some other security.

Definition of
convertible security
Stockholding & Investments
investment product that can be converted to another a bond, warrant, or share of preferred stock that can be converted into another type of security, especially common stock ...

Zero-Coupon Convertible Security
Financial & Investment Dictionary:
Zero-Coupon Convertible Security
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Convertible Security
A security that is convertible into a different security. For example convertible preferred stock may be converted into common stock.
Corporate Bonds ...

Convertible Security. Securities that permit the holder to acquire an equity interest by converting (i.e., exchanging) the original security into common stock.

Busted Convertible Security - A convertible security that is trading well below its conversion value.

CONVERTIBLE SECURITY Corporate securities (usually preferred shares or stock or bonds) that are exchangeable for a set number of another form of security (usually common stock) at a prestated price.

convertible security
A corporate bond or a share of preferred stock that can be converted into shares of common stock of the issuing corporation.

Convertible Security
One security which is convertible into another. It is generally used with convertible preferred stock and convertible bonds. There is a specific rate at which the security can be converted.

Convertible security A that can be converted into common stock at the of the security holder, including and .
Convex Bowed, as in the shape of a curve. Usually referring to the price/required relationship for option-free bonds.

Convertible SecurityExpand/Collapse
A bond, debenture or preferred share which may be exchanged by the owner, usually for the common stock of the same company.

A convertible security that is trading like a straight security because the optioned common stock is trading low. Also called a busted convertible.

A convertible security that is traded like an equity issue because the optioned common stock is trading high.
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A convertible security whose optioned common stock is trading in a middle range, causing the convertible security to trade with the characteristics of both a fixed income security and a common stock instrument.
I
I-bonds ...

(2) For a convertible security, see conversion value.
parity value of a convertible bond
See conversion value.

Zero-coupon convertible security
A 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.

The value of a convertible security if it is converted immediately. Also called parity value.
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HYBRID SECURITY - A convertible security whose optioned common stock is trading in a middle range, caus...
HYBRIDIZATION - Is the act or process of creating a new instrument which has two or more credit, equity...

Antidilutive. A convertible security which could increase a corporation's earnings per share if exercised or converted into common stock.
Appraisal. An estimate of market value placed on property.

Parity For convertibles, level at which a convertible security's market price equals the aggregate value of the underlying common stock; ...

conversion The process of converting a convertible security, such as a bond or preferred stock, into common stock. conversion arbitrage A risk-free transaction in which an investor purchases a put and writes a call...

Market conversion price Also called conversion parity price, the price that an investor effectively pays for common stock by purchasing a convertible security and then exercising the conversion option.

Common stock equivalent A convertible security that is traded like an equity issue because the optioned common stock is trading high. Common stock market The market for trading equities, not including preferred stock.

Convertible security A security that, at the option of the holder, may be exchanged for another asset, generally a bond for a fixed number of shares of common stock.

Redemption cushion The percentage by which the conversion value of a convertible security exceeds the redemption price (strike price).

Stated conversion price At the time of issuance of a convertible security, the price the issuer effectively grants the security holder to purchase the common stock, equal to the par value of the convertible security divided by the conversion ratio.

Exercise - Is the action taken by the holder of an option or convertible security to convert his derivative position into the underlying security, commodity or futures.

Investment Value Of A Convertible Security
The estimated price at which a convertible security would be valued if it did not have a stock conversion feature. A convertibles' investment value is determined by investment advisory services.

Occurs when a convertible security is called in by the issuer, usually when the underlying stock is selling well above the conversion price. Thus, they assure the bonds will be retired without requiring any cash payment.

The number of common shares for which a convertible security can be exchanged. Convertible preferreds and debentures would have a stated number outlined in their prospectus or indenture as to the exchange rate.

An investor's effective cost to purchase common stock when it is purchased in the form of a convertible security and the investor then exercises the security's conversion option.

At the time of issuance of a convertible security, the price the issuer effectively
grants the security holder to purchase the common stock, equal to the par value of the convertible security
divided by the conversion ratio.
Terminal value ...

See also: Bond, Busted Convertible Security, Contingent Convertibles - CoCos, Conversion Price, Convertible Preferred Stock, Death Spiral, Hybrid Security, Mandatory Convertible, Residual Security, Stock, Warrant ...

Also called conversion parity price, the price that an investor effectively pays for common stock by purchasing a convertible security and then exercising the conversion option.

Definition: [crh] At the time of issuance of a convertible security, the price the issuer effectively grants the securityDefinition: holder to purchase the common stock, ...

CONVERSION RATIO " The number of shares of stock into which a convertible security may be converted. Conversion ratio equals the par value of the convertible security divided by the conversion price.

Refers to the percentage above parity at which the convertible security is trading. Conversion Premium is calculated as follows: (Convertible Price - Conversion Value) divided by Conversion Value
Conversion Ratio ...

The amount, expressed as a dollar value or as a percentage, by which the price of the convertible security exceeds the current market value of the common stock into which it may be converted.
Critical Mass: ...

Conversion Ratio The number of shares of common stock for which a convertible security can be exchanged for.
Convertible Bond Bond that can be converted to equity at a pre-specified conversion ratio.

A conversion price is the predetermined price, set at the time of issue, at which you can exchange a convertible bond or other convertible security for common stock.

The number of Ordinary shares/Common stock which the security holder will receive if he decides to exercise the option of a convertible security (such as a Convertible bond).
Français: Rapport de conversion
Español: Relación de conversión ...

The conversion ratio is the number of common shares to be received in exchange for a convertible security.
Convertible bonds ...

Arbitrage may also involve the purchase of rights to subscribe to a security, or the purchase of a convertible security - and the sale at or about the same time of the security obtainable through exercise of the rights or of the security obtainable ...

50, an arbitrageur may simultaneously purchase ABC stock in New York and sell it in London realizing a profit of $0.50 a share, less expenses. Another common form of arbitrage involves the purchase of a convertible security and the sale at or about ...

See also: Banks, Expense, Values, Expected return, Convertible Bond