Convertible Bond
/kənˈvɜːrtəbl bɑnd/
Definitions
- (n.) A bond that can be converted into a predetermined number of the issuer's equity shares at specified times and conditions.
The investor opted for a convertible bond to benefit from potential equity upside.
Forms
- convertible bonds
Related terms
See also
Commentary
Convertible bonds bridge debt and equity, often requiring clear terms on conversion price and timing in agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.