convertible security

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convertible security

n.
A security that, at the holder's option, may be exchanged for another asset, typically a fixed number of shares of common stock.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.convertible security - a corporate security (usually bonds or preferred stock) that can be exchanged for another form of security (usually common stock)
certificate, security - a formal declaration that documents a fact of relevance to finance and investment; the holder has a right to receive interest or dividends; "he held several valuable securities"
References in periodicals archive ?
Consideration is being given to providing TELUS shareholders with an exchangeable security alternative that will permit eligible shareholders to elect to receive, at their option and subject to a maximum number of securities, securities exchangeable into Units of the Fund.
Distributable income (defined in Chartwell's Declaration of Trust as net earnings before depreciation and amortization, future income tax expense or credits, gains or losses on asset dispositions, amortization of discounts or premiums on long-term debt and deferred financing costs, interest on convertible debentures and any exchangeable security distribution amount; plus up to 100% of the principal portion of capital subsidy receivables from the Ontario Ministry of Health and Long-Term Care for long-term care facilities, and amounts received as contingent consideration for operating subsidies that are not included in net income under GAAP) is calculated by Chartwell with reference to its net income on a consolidated basis, as determined in accordance with GAAP.
The securities pay interest monthly at a rate equal to the actual distribution by Custom Direct Income Fund (the "Fund") in that month and a holder of an Exchangeable Security will have the right to exchange the security for a unit of the Fund once MDC is entitled to effectively exchange its 20% ownership of Custom Direct, Inc.