![]() |
|
Financial Terms | |
Convertible security |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: tax advisor, inventory, payroll, financial, inventory control, financial advisor, investment, credit, |
Definition of Convertible securityConvertible securityA security that can be converted into common stock at the option of the security holder,
Related Terms:Common stock equivalentA convertible security that is traded like an equity issue because the optioned Conversion premiumThe percentage by which the conversion price in a convertible security exceeds the Conversion ratioThe number of shares of common stock that the security holder will receive from Conversion valueAlso called parity value, the value of a convertible security if it is converted immediately. Convertible priceThe contractually specified price per share at which a convertible security can be Fixed-income equivalentAlso called a busted convertible, a convertible security that is trading like a straight Hybrid securityA convertible security whose optioned common stock is trading in a middle range, causing ![]() Market conversion priceAlso called conversion parity price, the price that an investor effectively pays for Premium1) Amount paid for a bond above the par value. Redemption cushionThe percentage by which the conversion value of a convertible security exceeds the Stated conversion priceAt the time of issuance of a convertible security, the price the issuer effectively Straight valueAlso called investment value, the value of a convertible security without the con-version option. Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts Available-for-Sale SecurityA debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period. Busted convertibleRelated: Fixed-income equivalent. convertible bondBond that the holder may exchange for a specified number of shares. ![]() Convertible bondsBonds that can be converted into common stock at the option of the holder. Convertible DebentureAre debt instruments that are convertible into common or preferred shares, take secondary or no security against assets, have flexible terms of repayment and charge fixed or floating interest rates. Convertible eurobondA eurobond that can be converted into another asset, often through exercise of Convertible exchangeable preferred stockconvertible preferred stock that may be exchanged, at the Convertible preferred stockPreferred stock that can be converted into common stock at the option of the holder. ConvertiblesSecurities (generally bonds or preferred shares) that are exchangeable at the option of the holder for common shares of the issuing firm. Debt SecurityA security representing a debt relationship with an enterprise, including a government Derivative securityA financial security, such as an option, or future, whose value is derived in part from the Employee Retirement Income Security Act of 1974 (ERISA)A federal Act that sets minimum operational and funding standards for employee benefit Equity SecurityAn ownership interest in an enterprise, including preferred and common stock. Exchangeable Securitysecurity that grants the security holder the right to exchange the security for the ![]() Fixed-dollar securityA nonnegotiable debt security that can be redeemed at some fixed price or according to Fixed-income securityA security that pays a specified cash flow over a floating-rate securitysecurity paying dividends or interest that vary with short-term interest rates. Held-to-Maturity SecurityA debt security for which the investing entity has both the positive Host securityThe security to which a warrant is attached. Marketable securityAn easily traded investment, such as treasury bills, which is Monthly income preferred security (MIP)Preferred stock issued by a subsidiary located in a tax haven. Mortgage pass-through securityAlso called a passthrough, a security created when one or more mortgage Nonmarketable SecurityA debt or equity security for which there is no posted price or bidand- Primitive securityAn instrument such as a stock or bond for which payments depend only on the financial SecurityPiece of paper that proves ownership of stocks, bonds and other investments. SecurityEither the collateral on a loan, or some type of equity ownership or debt, such SecurityA share or an interest in a property or an enterprise such as a stock certificate or a bond. SecurityCollateral offered by a borrower to a lender to secure a loan. Security characteristic lineA plot of the excess return on a security over the risk-free rate as a function of Security deposit (initial)Synonymous with the term margin. A cash amount of funds that must be deposited Security deposit (maintenance)Related: Maintenance margin security market line (SML). A description of Security market lineLine representing the relationship between expected return and market risk. Security Market LineA graph illustrating the equilibrium relationship between the security market lineRelationship between expected return and beta. Security selection decisionChoosing the particular securities to include in a portfolio. Security ValueThe monetary value placed on security by a lender in determining the extent to which it can make loans against such security. Social Security Act of 1935A federal Act establishing Old Age and Survivor’s Trading SecurityA debt or equity security bought and held for sale in the near term to generate income on short-term price changes. Underlying securityOptions: the security subject to being purchased or sold upon exercise of an option Variable price securityA security, such as stocks or bonds, that sells at a fluctuating, market-determined price. Bond valueWith respect to convertible bonds, the value the security would have if it were not convertible Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |