Hybrid security

Hybrid Security - Hybrid Security is the combination of more than two variables of different financial instruments. Hybrid Security is a combination with debt characteristics and equity characteristics.

Hybrid Security
A security that combines two or more different financial instruments. Hybrid securities generally combine both debt and equity characteristics.

Hybrid security
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.

Trust preferreds are a hybrid security consisting of a preferred stock issued by a special trust and debt securities issued by the company.

Exchangeable bond (or XB) is a type of hybrid security consisting of a straight bond and an embedded option to exchange the bond for the stock of a company other than the issuer (usually a subsidiary or company in which the issuer owns a stake) ...

Preferred stock is a hybrid security that is a fixed income investment rather than an investment for appreciation.
Dividends ...

While it does have some rights and features, a preferred stock describes a hybrid security that is a fixed income investment and not an investment for appreciation.

Convertible bonds are bonds that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio. It is a hybrid security with debt- and equity-like features.

See also: Stock, Market, Trading, Security, Bonds