A bond which, at the option of the holder, is convertible into securities of the corporation, usually into common equity. Occasionally, convertibles have been issued by one corporation convertible into the equity of another. Also some securities have been issued which are convertible into a specified amount of an underlying commodity.

Convertible bonds are corporate bonds that you can convert into equity share of the company that issues them rather than redeeming them for cash when they mature. The details governing the conversion, such as the price of the share, are set when the bonds are issued. These bonds have a double appeal for investors concerned about volatility and high share prices: Their prices go up if share prices go up but usually drop less than the underlying share price if that price should fall. And while convertible bonds typically provide lower yields than regular bonds, they generally provide higher yields than the underlying share.

Fixed-interest security issued by a stock corporation. It entitles the owner to exchange the bond for shares of the concerned stock corporation from a specified time on and in a prespecified ratio.

The term 'convertible' means that the first set of securities (i.e., the Convertible Bond) is exchangeable into another type of security, usually common stock of the same company as stipulated by the terms of the conversion privilege. Most convertible securities are debt or preferred shares that can be converted into common shares.

Bonds issued by corporations that, under specific conditions, can be exchanged or converted to another security or stock from the same company.

A type of bond that has an option which can be exercised by the owner of the bond to exchange the bond for an equity security (common or preferred stock) of the issuer. The bond will state the times and number of shares that the bond may be converted into.

These bonds can be converted into a specified number of shares of the issuing company at a pre-determined price.

bond having a fundamental feature that changes in a prescribed manner at a future date.  For example, a tax-exempt bond initially offered as a capital appreciation bond or zero coupon bond may, at a date and rate stated at the time of issuance, convert to a current interest paying bond.  Another example is a taxable exchangeable bond.  Variable rate bonds having various interest rate modes generally are not referred to as convertible bonds.  See:  TAXABLE EXCHANGEABLE BOND.

A Bond that can into a fixed number of ordinary shares, normally on one conversation date a year. If the Bond has not been converted into Ordinary shares at maturity it is redeemed into cash.

Bonds made up of bonds and equity options, in which when the bondholder exercises the option has to surrendered the bond. They tend to offer a lower rate of return in exchange for the option to trade the bond into stock, if the stock price does well.

A bond that is convertible into another instrument, sometimes another type of bond but more commonly into company shares at a fixed price which usually represents a premium over the current or average share price. Because of this inducement, the bond can carry a lower coupon at par. The option to convert usually lasts the life of the bond but borrowers often reserve the right to call the bond earlier than the normal call if the share price reaches up to, say, 150 percent of the conversion price, thus protecting them from offering shares at the lower fixed price should the market price suddenly surge.

These debt instruments may be exchanged by the holder for common stock or another security - usually of the same company – in accordance with the terms and exchange ratios identified in the original issue.

A bond that is convertible into the common stock of a corporation at a prescribed price or ratio at the option of the holder. The holder of a convertible bond is a creditor of the issuer, who may share in the additional profits over and above the coupon's rate of the bond, if the company prospers. Also called a debenture. The conversion price is the price for which a convertible bond of a corporation may be exchanged for stock of the same corporation.

A corporate bond that can be converted into another form of security, usually stock, at a later date.

General debt obligation of a corporation that can be exchanged for a set number of common shares of the issuing corporation at a prestated conversion price.

A bond that may, upon certain contingencies, be exchanged for common stock or some other security of the same corporation.

a bond that can be converted to other securities under certain conditions

a bond issued by a corporation which can be converted into the stock of the bond issuer

a bond of a corporation that can be exchanged for another security, usually the common stock of the same corporation

a bond that an investor can return to

a bond that gives the bondholder the option of turning in the bond and receiving in return a specified number of shares of common stock in the same corporation, thereby converting the bond into stock

a bond that gives the holder the right to "convert" or exchange the par amount of the bond for common shares of the issuer at some fixed ratio during a

a bond that is convertible, at the option of the bondholder, into shares of the issuer's common stock

a bond which can be converted into a company's common stock

a corporate bond that can be converted into shares of the issuing company's common stock

a corporate bond that can be redeemed for company stock at some future point

a corporate bond, which pays a fixed rate of interest but can be exchanged for a specific number of shares of common stock in the same company

a debenture that is convertible into a specified number of shares of the issuing company's stock at a specified price

a debt instrument that can be converted into shares of the issuer at the option of the holder, making the structure part debt and part equity

a debt security issued by a corporation that can be exchanged into the issuer's common stock

a hybrid financial instrument that grants its holder the option of exchanging the bond into a specified number of common shares at a specified price

a hybrid security that can be converted into company stock

a long-term IOU issued by a corporation

a mix between a debt and equity instrument

an ordinary Bond, plus the option to exchange the Bond for the Shares

A corporate bond that can be exchanged for a specific number of shares of the company's common stock. Convertible bonds tend to have lower interest rates than non-convertibles because they also accrue value as the price of the underlying stock rises. In this way, convertible bonds reflect a combination of the benefits of stocks and those of bonds.

A convertible bond presents the same characteristics as an ordinary bond and gives, in addition, the possibility of exchanging the bond for stock of the issuing company. As a counterpart, the interest rate is lower than that of a classic bond.

A bond where the holder has the option to convert to another bond or equity in the future at pre-defined dates and under agreed terms.

A security that can be converted into equity at the option of holder. The bond will carry a lower than normal coupon, but will also carry the right to be converted into a fixed number of shares at a price set at the time of the bond's issue.

A bond with an option, allowing the bondholder to exchange the bond for a specified number of shares of common stock in the firm. A conversion price is the specified value of the shares for which the bond may be exchanged. The conversion premium is the excess of the bond's value over the conversion price.

A bond that is able to be converted, or traded in, for another security at the option of the bondholder.

Bond that gives its holder the option of converting it into shares of the company that issued it at a certain point in time and a predefined conversion ratio. The bond is cancelled after conversion.

A bond that can be be exchanged for common stock at maturity

A bond issued by a company that can be exchanged for a set number of shares, usually of the issuing corporation, at a prestated conversion price.

Bond that can be converted into another security, usually a common stock.

A corporate bond that can be exchanged for a set number of common or preferred stock of the at a pre-stated conversion price.

Bond which gives the holder the option of either receiving repayment of the principal at maturity, or converting the debt into shares (either in the issuing company, or some other company). Sometimes referred to as hybrid capital. See also debt capital and equity capital.

A bond that can be converted into shares of the issuing company, or its parent.

Primarily in bonds that can be converted into common stocks.

A bond with the option to convert into shares of common stock of the same issuer at a pre-established price.

A bond that offers the holder the privilege of converting the bond into a specified number of shares of stock.

A bond that, at the option of the holder, can be exchanged into a specified number of shares of the corporation, usually into common equity, at a pre-stated price.

A debt security that can be exchanged for equity securities (stock), of the issuing corporation at specified prices or rates.

A bond that permits the holder to convert to the common shares of the issuer at a fixed conversion price during the life or at maturity of the bond. This bond combines the features of a fixed income security and the option of conversion into a specified number of shares.

A bond that can be exchanged for shares of the issuer's common stock at the terms stipulated.

A bond that can be converted into a fixed number of ordinary shares at a pre-determined price at any date before the bond matures.

A bond with an imbedded option that allows the holder to convert the bond to common stock.

Debt obligation which can be exchanged for common shares.

A bond that may be exchanged, usually for the common stock of the same company as stipulated by the terms of the conversion privilidege.

A credit instrument which is convertible into equity. Usually, this conversion is done at the discretion and exercise of the bondholder and not the corporation.

A debt security that is exchangeable for a set number of shares of another type of security, usually common stock, at a predetermined price. See Bond.

A bond containing a provision that permits conversion between the issuer's bonds and common stock at some fixed exchange ratio. See also: Exchangeable Bond.

A bond that can be exchanged for (converted into) shares of common stock.

A bond that investors may exchange for stock at a future date under certain conditions. Convertibles are an intriguing hybrid investment, offering some of the upside potential of stocks but also the downside protection of bonds. On the upside, bonds offer a conversion ratio that dictates how many shares of stock you can receive if you trade in your bonds. Typically, you'll pay a premium for the exchange, but if the underlying stock is on fire, conversion is worthwhile. On the downside, bonds offer a guaranteed dividend yield, even if the underlying stock slides. Because of their complexity, the best way to invest in convertibles is through a convertible bond fund.

The holder of a convertible bond may convert the bond to shares during its period to maturity at a previously agreed rate. Whether the conversion option is profitable for the owner will depend on the performance of the share price. If the option to convert is not exercised, the bond is redeemed on maturity.

A bond that may be exchanged for the common stock of the same company. If the bondholder wishes to convert the bond, it must be done according to the terms of the indenture. See: Bond; Common Stock; Convertible Securities

A bond that can be converted into a predetermined amount of the company's equity at certain times during its life. Convertibles are sometimes called CVs.

A bond that can be exchanged at the option of the holder into preferred or common stock at a preset ratio.

A bond that may, at the holder's option, be exchanged for a predetermined number of shares of common stock, within a given time frame.

A bond which confers on the holder the right to exchange the bonds for other securities of the issuing company at a predetermined price and at, or during, determinable dates.

A bond that is exchangeable, usually for a predetermined number of common stock shares in the same company.

A bond that can be exchanged for a predetermined number of shares of common stock in the same company.

Convertible bonds are securities that give an investor the right to exchange the bonds for other securities of the issuer at some future date and under prescribed conditions. The bonds are usually exchanged for other securities at a preferred rate. Convertible bonds may sometimes offer higher income than is available from common stock and/or greater appreciation than regular bonds.

A bond (long term note) that can be exchanged by the holder for a specified number of shares of stock in the company. The convertibility feature usually allows for the bond to have a lower interest rate when it is issued. The holder of the bond enjoys the potential for a gain if the stock price increases. To Top

A convertible bond is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio. Although it typically has a low coupon rate, the holder is compensated with the ability to convert the bond to common stock, usually at a substantial premium to the stock's market value.