Convertible Bonds



Next video:
Loading the player...

A convertible bond is a bond the investor can exchange for a specific amount of company stock at a later date. It combines a bond and a call option.
The amount of stock that a bondholder can acquire is subject to a pre-determined formula.
 
 

You May Also Like

Related Articles
  1. Investing Basics

    Stock Rights Issue

  2. Bonds & Fixed Income

    Zero-Coupon Bond

  3. Investing Basics

    Warrants

  4. Investing

    Introduction To Bonds

  5. Trading Strategies

    Call Option Basics

  6. Bonds & Fixed Income

    A Look at the Pros and Cons of Muni Bonds

  7. Bonds & Fixed Income

    How to Diversify with Muni Bond ETFs

Trading Center