See What are GST and HST. See day's sales outstanding. The overnight rate is the interest rate at which. There are special rules for. GAAP stands for generally accepted. Djvidend market price of a tradeable bond will be influenced, amongst other factors, by the amounts, currency and timing of the interest payments and capital repayment due, the quality of the bond, and the available redemption yield of other comparable bonds which can be traded in the markets. Short term government debt.

A convertible bond is one which is convertible into the company's common. The conversion option to the bond is exerciseable when and if the. The conversion ratio varies from bond to bond. The exact number of shares. Many times the indenture will tell you how many shares of stock the bond is. For instance, it might say that it is convertible into Therefore, the conversion ratio is Unfortunately, it's not always. For instance, the indenture might state the conversion price. For example, if the indenture states that.

Occasionally, the indenture might state that the conversion. For example, the conversion price might be. If the stock were to. A stock dividend would also. A stock split would also reduce the conversion price. Because convertible bonds have a little something extra, the right to convert. If the stock price rises, the. Since most convertible bonds are also callable, the. This is known as 'Forced Conversion'. When a bond is.

What was formerly debt. Of course, converting debt bonds into stock. The company didn't get any. But each stockholder's piece of the pie got. If the company's stock declines to a price which makes the convertible. There is a price level to which. One other term to know is 'Parity'. The upside of the convertible comes from.

A convertible preferred also has. A convertible preferred typically pays a cash. Valuation: For equity oriented investors, convertibles can be. A convertible security can be viewed as. The upside of the convertible comes from the. The higher the price of the underlying stock goes, the. The downside protection of the. At very high prices, the. The combination of the. Low breakeven convertibles typically. A convertible can also be viewed as a. In this case the upside of the convertible comes from.

For a convertible bond calculator, see Numa IV. Some Definitions from Campbell. Harvey's Glossary Mandatory Convertibles PEPS. P articipating E quity P referred S hares, are a. PEPS usually provide a coupon of 6. The Effect dividend put option bonds coupon is. These securities typically mature in 3 to 5 years. PHONES, ZONES and ZENS. These securities are usually.

They typically have a yield that is 1. PHONES typically have maturities of These securities can be exchanged at any time into a cash value. For taxable investors, these securities do have a. These securities are typically callable. Source: Adapted from Equity. For a convertible bond calculator, see Numa. Specification of the right to transform a particular investment to another form of investment, such as switching between mutual funds or converting preferred stock or.

See: Market conversion price. Related: Market conversion price. Common stock price at which a convertible bond can become exchangeable for common shares of equal value; value of a convertible bond based solely on. Conversion premium The extent by which the conversion price of a convertible security exceeds the effect dividend put option bonds common stock price at the time the convertible security is.

Conversion price Dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock, as specified when the convertible is. Conversion ratio Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred stock when a conversion takes place. It is determined at the time of issue and is expressed either as a ratio or as a conversion price from which the ratio forex full hedging interest trading devices be figured by dividing the par value of the convertible by the conversion price.

Conversion value The value of a convertible security if it is converted immediately. Also called parity value. Also called conversion parity price, the price that an investor effectively pays for common stock by purchasing a convertible security and then exercising the conversion option. This price is equal to the market price of the convertible security divided by the. Convertible adjustable preferred stock Caps. The interest rate on caps is adjustable and is pegged to Treasury security rates.

They can be exchanged at par value for.

Options on Dividend Stocks

Key Bond Investment Considerations, part 1 Assessing Risk. All investments carry some degree of risk, which is linked to the return that investment will provide. Convertible Bonds and Other Convertible Securities I. Convertible Bond. A convertible bond is one which is convertible into the company's common stock. Canadian Tax and Financial Information Glossary Ads keep this website free for you. does not research or endorse any product or service.