convertible bond
1
7.6
- noun
- /kənˈvɜːrtəbl bɑnd/
- Specialized
:
bono convertible
- Investors are particularly attracted to convertible bonds because they offer the potential for capital appreciation and fixed income.
- convertible bond and stocks
- convertible bonds worth
- million convertible bonds
OK, so now that we know what convertible bonds are and that they contain a warrant, let's look at the convertible bond in question.
- OK, so now that we know what convertible bonds are and that they contain a warrant, let's look at the convertible bond in question.
- That means either taking on debt, taking on debt in the form of convertible bonds which are dilutive to shareholders, or selling stock.
- For instance, hybrid instruments such as convertible bonds or convertible preferred stock may be listed on stock or bond exchanges.
Examples
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OK, so now that we know what convertible bonds are and that they contain a warrant, let's look at the convertible bond in question.
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Sony is making a little extra cash by selling $1.9 billion worth of convertible bonds.
Blog text (34) -
But i move that the board of directors authorize this company to issue $10 million worth of convertible bonds.
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That means either taking on debt, taking on debt in the form of convertible bonds which are dilutive to shareholders, or selling stock.
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Concurrent with the merger agreement, the parties negotiated a convertible bond agreement.
Academic text (2017) -
This injunction prevents his issuing stock, but he's issuing convertible bonds and turning them into stock.
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Convertible bonds would essentially give it Sprint stock at the price of $5.25 a share, according to CNBC.
Blog text (21) -
The company announced the issuance of $500 million in convertible bonds to fund its new project.
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A convertible bond allows its holder to exchange it for a certain number of shares of the issuing company at a specified price.
Synonyms
3
7.7
An investment that can be changed into company shares
1
8.3
An investment like a bond or preferred share that you can change into the company's common stock under certain conditions
How Convertible
- Specialized
1
7.6
Surface Forms
Morphology
The meaning 'a bond that can be exchanged for shares' is directly derived from combining 'convertible' (capable of being changed or exchanged) with 'bond' (a debt instrument). Although financial, the adjective+noun composition is fully compositional and similar constructions exist across languages, so a learner who knows both words can infer the MWE meaning.
Etymology
Convertible bond comes from a simple image: the word bond is a promise to pay money, and convertible means it can be changed into something else. So it means a bond that can be exchanged for company 'shares', giving regular payments now and a chance to own part of the company later.