 |
Definition of 'Mandatory Convertible'
A type of convertible bond that has a required conversion or redemption feature. Either on or before a contractual conversion date, the holder must convert the mandatory convertible into the underlying common stock.
These securities provide investors with higher yields to compensate holders for the mandatory conversion structure.
|
 |
Investopedia explains 'Mandatory Convertible'
These are often used when a traditional equity issuance would otherwise place severe market pressure on the underlying stock.
|
-
Mandatory convertibles are a little understood security with some distinct advantages. Find out if they are right for you.
Read More »
-
Find out about the nuts and bolts, pros and cons of investing in bonds.
Read More »
-
These securities offer an answer for investors who want the profit potential of stocks but not the risk.
Read More »
|
|
