Convertibles
/kənˈvɜːrtɪbəlz/
Definitions
- (n.) Securities, usually bonds or preferred stocks, that can be converted into a predetermined number of common shares.
The investor purchased convertibles to benefit from potential stock price appreciation while receiving fixed income.
Related terms
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Commentary
Convertibles involve hybrid features of debt and equity, offering strategic options in financing and investment 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.