convertible security


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Related to convertible security: Mandatory Convertible

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 ?
0909 common shares per mandatory convertible security and the minimum conversion rate was set at 7.
Sydney, Australia, May 9, 2012 - (ABN Newswire) - Gold Anomaly Limited (ASX:GOA) has secured funding from Bergen Global Opportunity Fund, LP ("Bergen"), a US-based institutional investor managed by Bergen Asset Management, LLC ("Bergen Asset Management"), under a Convertible Security Agreement executed today ("the Agreement").
One example would be a convertible security, a fixed-income instrument with an equity component.
85, Yield Test for Determining whether a Convertible Security Is a Common Stock Equivalent.
NYSE: AMG) today announced that underwriters had exercised their over-allotment option and purchased from AMG additional mandatory convertible security units, resulting in approximately $29 million in net proceeds.
In addition, the two-thirds yield test seems to be biased against common stock equivalence, since it compares the return of a relatively low-risk Aa-rated corporate bond with that of a given company's convertible security that may be riskier because of the company's credit standing.
A convertible security has value both as a bond and as stock.
Each convertible security is a unit that initially consists of both a forward purchase contract for a specified number of shares of AMG common stock and senior, unsecured notes.
The most critical feature for the convertibles market has been BuySideDirect's automated contingent order feature, which allows traders to link an order for a convertible security to an order for the underlying stock," said Carl Huttenlocher, CEO and Co-Founder of the company.
Conversion is assumed if the convertible security is a common stock equivalent and the assumed conversion reduces EPS.
Each mandatorily convertible security will trade on the New York Stock Exchange under the symbol CIN:PrI.