Home > Terms > English, UK (UE) > convertible

convertible

The corporate securities, usually preferred shares or bonds, that can be exchanged for a set number of another form, usually common share, at a pre-stated price. Convertibles are appropriate for investors who want higher income than is available from common stock, together with greater appreciation potential than regular bonds offer. From the issuer's standpoint, the convertible feature is usually designed as a sweetener, to enhance the marketability of the stock or preferred.

0
Collect to Blossary

Member comments

You have to log in to post to discussions.

Terms in the News

Featured Terms

Harry8L
  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: Economy Category: International economics

Quantitative easing round 3 (QE3)

The U.S. Federal Reserve's 3rd round of stimulus aimed at shoring up the country's economy since the 2007 world financial crisis. It's designed to ...

Featured blossaries

Most Watched Sports

Category: Sports   1 10 Terms

Types of Steels

Category: Engineering   3 20 Terms