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. Professionals

    Worried About Stocks? Try on Convertibles

  7. Stock Analysis

    Playing Rising Rates with Ultra-Short Term Bonds

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!