Convertible bond

How it is used

Specify the conversion ratio, timing and party holding the conversion right.

Example sentences

1. The convertible bond allowed holders to receive twenty shares for each bond.

   The conversion ratio links the debt instrument to shares.

2. The issuer calculated potential dilution from the outstanding convertible bonds.

   Conversion can increase the number of shares outstanding.

Common collocations

• convertible bond issue
• convertible bond conversion ratio

Related terms

• bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.
• equityThe owners' share of a company: what is left when liabilities are taken away from assets. It includes paid-in capital and retained profits.

More terms: Corporate Finance

• cash flow
• capital
• working capital
• leverage
• dividend
• valuation
• M&A
• IPO
• due diligence
• shareholder
• raise capital
• issue