Convertible Bond (Noun)
Meaning
A bond that can be converted to other securities under certain conditions.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company issued a convertible bond that could be exchanged for common stock at the investor's discretion.
- Convertible bonds are often used by companies to raise capital without immediately diluting the ownership of existing shareholders.
- The investor purchased a convertible bond with a face value of $1,000 that could be converted to 50 shares of the company's stock.
- The convertible bond had a conversion price of $20 per share, which was higher than the current market price of the stock.
- The company's convertible bond offering was oversubscribed, indicating strong demand from investors for the hybrid security.