common stock equivalent Synonyms
No Synonyms and anytonyms found
common stock equivalent Meaning
common stock equivalent (n)
preferred stock or convertible bonds or warrants that can be converted into common stock
common stock equivalent Sentence Examples
- A common stock equivalent is a financial instrument that can be converted into common stock under specific conditions.
- Convertible bonds are a common type of security that serves as a common stock equivalent, allowing bondholders to convert their bonds into shares of common stock at a predetermined ratio.
- Stock options are another example of a common stock equivalent, granting the holder the right to purchase shares of common stock at a specified price within a certain time frame.
- Restricted stock units (RSUs) are often considered common stock equivalents, as they represent the right to receive shares of common stock at a future date, subject to certain restrictions.
- Preferred stock with conversion rights can also be classified as a common stock equivalent, as holders have the option to convert their preferred shares into common stock.
- Convertible preferred stock is another form of common stock equivalent, offering investors the option to convert their preferred shares into common stock at a predetermined conversion ratio.
- Warrants are financial instruments that give the holder the right to buy shares of common stock at a specific price within a specified period, making them common stock equivalents.
- Equity-linked notes are debt securities that offer investors the potential to receive payments linked to the performance of a company's common stock, effectively serving as a common stock equivalent.
- Certain types of employee stock options and stock appreciation rights (SARs) are considered common stock equivalents, as they provide employees with the opportunity to benefit from increases in the company's common stock price.
- Convertible securities are commonly used as common stock equivalents, providing investors with the flexibility to convert their securities into shares of common stock if desired.
FAQs About the word common stock equivalent
preferred stock or convertible bonds or warrants that can be converted into common stock
No synonyms found.
No antonyms found.
A common stock equivalent is a financial instrument that can be converted into common stock under specific conditions.
Convertible bonds are a common type of security that serves as a common stock equivalent, allowing bondholders to convert their bonds into shares of common stock at a predetermined ratio.
Stock options are another example of a common stock equivalent, granting the holder the right to purchase shares of common stock at a specified price within a certain time frame.
Restricted stock units (RSUs) are often considered common stock equivalents, as they represent the right to receive shares of common stock at a future date, subject to certain restrictions.
