Mandatory Convertible

Filed Under » ,
Dictionary Says

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 Says

Investopedia explains 'Mandatory Convertible'

These are often used when a traditional equity issuance would otherwise place severe market pressure on the underlying stock.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Busted Convertible Security

    A convertible ...
  2. Conversion Price

    The price per ...
  3. Convertibles

    Securities, ...
  4. Contingent Convertibles - CoCos

    A security ...
  5. Conversion Price

    The price per ...
  6. Convertible Bond

    A bond that can ...
  7. Convertible Preferred Stock

    Preferred stock ...
  8. Common Stock

    A security that ...
  9. Mandatory Convertible

    A type of ...
  10. Structured Yield Product ...

    A type of ...

Articles Of Interest

  1. The Mandatory Convertible: A "Must Have" For Your Portfolio?

    Mandatory convertibles are a little understood security with some distinct advantages. Find out if they are right for you.
  2. Convertible Bonds: An Introduction

    Find out about the nuts and bolts, pros and cons of investing in bonds.
  3. Introduction To Convertible Preferred Shares

    These securities offer an answer for investors who want the profit potential of stocks but not the risk.
  4. This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  5. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  6. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  7. 5 Popular Portfolio Types

    Learning how to build these portfolios will increase your investing confidence and give you financial control.
  8. How To Invest When You're Deep In Debt

    Debt is one of the biggest obstacles that prevents people from investing - but it shouldn't be.
  9. Finding Your Investing Comfort Zone

    Choosing the right investments for you is the best way to feel comfortable with your portfolio.
  10. Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center