Convertibles

Securities, usually bonds or preferred shares, that can be converted into common stock. Convertibles are most often associated with convertible bonds, which allow bond holders to convert their creditor position to that of an equity holder at an agreed upon price. Other convertible securities can include notes and preferred shares, which can possess many different traits.

Convertibles are ideal for investors demanding greater potential for appreciation than bonds provide, and higher income than common stocks offer. Convertible bonds, for instance, will typically offer a lower coupon than a standard bond. However, the optionality of the bond to convert it to common stock adds value for the bond holder.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • convertibles — /kənˌvɜ:təb(ə)lz/ plural noun corporate bonds or preference shares which can be converted into ordinary shares at a set price on set dates …   Dictionary of banking and finance

  • Jennifer Convertibles — Inc. (AMEX|JEN) is the owner and licensor of sofabed specialty retail stores and leather specialty retail stores in the United States, with stores located throughout the Eastern seaboard, in the Midwest, on the West Coast and in the Southwest. As …   Wikipedia

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  • mandatory convertibles — A debt instrument that is exchangeable at some point for equity in the form of common stock or a new issue. Bloomberg Financial Dictionary …   Financial and business terms

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  • flat — Convertibles: Earning interest on the date of payment only. Bloomberg Financial Dictionary General: Having neither a short nor a long position in a stock. clean. Bloomberg Financial Dictionary Market: Characterized by horizontal price movement,… …   Financial and business terms

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