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Fundamental
Convertible Bond
Debt instrument convertible into equity under certain terms
Definition
A convertible bond can be converted into a predetermined number of shares of the issuer's common stock. It offers downside protection through fixed income features while providing upside potential through equity conversion. Conversion typically occurs when stock price exceeds a specified level.
Related Topics
#hybrid security
#equity conversion
#downside protection
#upside potential
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Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
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