An action resulting in the calling in of a convertible security against the...
Use of a firm's call option on a callable convertible bond when the firm knows that the bondholders will exercise their option to convert.
A situation in which a convertible security is called in by the issuer. This usually happens when the underlying stock is selling well above the conversion price. Upon conversion into common stock, the value of the bonds becomes part of a corporation's equity, thus strengthening the balance sheet and enhancing future debt issuing capability.
When you own bonds or preferred shares there are sometimes provisions in place to allow the issuing company to make you give them back the security. Realize that they don't get them back for nothing; it is known ahead of time what the conversion value is.
An issuer's mandatory call that requires bondholders to redeem their bonds or convert them.
Occurs when a convertible security is called in by the issuer, usually when the underlying stock is selling well above the conversion price. The issuer thus assures the bonds will be retired without requiring any cash payment. Upon conversion into common, the carrying value of the bonds becomes part of a corporation's equity, thus strengthening the balance sheet and enhancing future debt capability.
The occurrence of an issuer of a convertible security exercising the right to call the issue, forcing investors to convert their securities into the predetermined number of shares.
A forced conversion occurs when someone adopts a religion or philosophy under the threat that a refusal would result in negative consequences not just in the afterlife but in this life too, ranging from job loss, social isolation to incarceration, torture, or death. Typically, such a conversion entails the repudiation of former religious or philosophical convictions.
