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Convertible security

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Convertible Security - A convertible security is an instrument of debt that combines a coupon-paying bond with the option to convert this bond so that it becomes a common stock, which has a set price.

 


Convertible Security
A security that can be converted into some other kind of security.

convertible security investment & finance definition
A bond, preferred stock, or warrant that is convertible to the issuer's common stock or some other security under certain circumstances.

A convertible security is any type of security that has the potential to be exchanged for other forms of security offered by the same issuing party. Generally, there are certain conditions that must be met before the conversion can take place.

The contractually specified price per share at which a Convertible security can be converted into Shares of common stock.

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Convertible security A security that may be exchanged for another asset " generally a bond that is exchanged for a fixed number of shares of common stock.

Convertible Security
A security of an issuer (for example - bonds, debentures, or preferred shares) that may be converted into other securities of that issuer, in accordance with the terms of the conversion feature.

Convertible security
A preferred stock or corporate bond that can be exchanged for shares of the company's common stock at a predetermined price or rate.

Convertible security
A security that can be converted into common stock at the option of the securityholder; includes convertible bonds and convertible preferred stock.

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.
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A "convertible security" is a security - usually a bond or a preferred stock - that can be converted into a different security - typically shares of the company's common stock.

What is a convertible security?
A convertible is a bond or a preferred stock that can be exchanged for another security, usually the common stock of the issuing company.

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.

Zero-Coupon Convertible Security (finance term)
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Zero-Coupon Convertible Security
A Zero-Coupon Convertible Security is a Zero-Coupon Bond that is convertible into the common stock of the issuing company when the stock reaches a certain predetermined price.

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...

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

Stated conversion price At the time of issuance of a convertible security, the price the issuer effectively grants the securityholder to purchase the common stock, ...

Convertibles - the price at which a convertible security equals the value of the underlying stock.
2. Options - when an option is trading at its intrinsic value ("trading at parity").
3.

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.

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

FCF refers to the amount of cash flow available for distribution among all the claim holders of an including equity holders, debt holders, preferred stock holders, convertible security holders, etc.

Securities other than bonds that may have embedded options include senior equity, convertible preferred stock and exchangeable preferred stock. See Convertible security.

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.

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 ...

See also: Security, Convertible, Stock, Investment, Share

Stock market Convertible debentureConvertibles

 
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