convertible security

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.

Thesaurus

Noun

1.

convertible security - a corporate security (usually bonds or preferred stock) that can be exchanged for another form of security (usually common stock) convertible 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"