convertible security (Meaning)
convertible security (n)
a corporate security (usually bonds or preferred stock) that can be exchanged for another form of security (usually common stock)
Synonyms & Antonyms of convertible security
No Synonyms and anytonyms found
convertible security Sentence Examples
- A convertible security is a financial instrument that can be converted into another form, typically equity shares.
- Investors are attracted to convertible securities due to their potential for capital appreciation and income generation.
- The company issued convertible securities as part of its financing strategy to raise funds for expansion.
- The terms of the convertible security specified the conversion ratio, conversion price, and other relevant details.
- Convertible securities provide investors with the flexibility to convert their investment into shares of the issuing company at a predetermined price.
- The value of convertible securities fluctuates based on changes in the price of the underlying stock and prevailing interest rates.
- Convertible securities often offer lower interest rates than traditional bonds due to their conversion feature.
- The conversion feature of convertible securities provides downside protection for investors in case the company's stock price declines.
- Institutional investors often participate in convertible securities offerings to diversify their portfolios and manage risk.
- The investment manager recommended adding convertible securities to the portfolio to enhance overall returns and mitigate downside risk.
FAQs About the word convertible security
a corporate security (usually bonds or preferred stock) that can be exchanged for another form of security (usually common stock)
No synonyms found.
No antonyms found.
A convertible security is a financial instrument that can be converted into another form, typically equity shares.
Investors are attracted to convertible securities due to their potential for capital appreciation and income generation.
The company issued convertible securities as part of its financing strategy to raise funds for expansion.
The terms of the convertible security specified the conversion ratio, conversion price, and other relevant details.
