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Convertible bonds usually have a higher yield than could be obtained with the shares that the bonds convert. They are also considered safer by the investor than preferred or common shared, so they provide asset protection. They are also usually less volatile than regular shares.
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What is the difference between a convertible bond and a convertible debenture?
A convertible debenture is a type of convertible bond. However, a debenture is unsecured debt, which means that there is no collateral for the bond. The alternative to a debenture would be a secured bond such as a mortgage bond that would be secured by real estate. If the company goes out of business, the collateral for the secured bonds would be used to pay off those bonds and the holders of the debentures would be paid from whatever is leftover. Most convertible bonds are debentures.
Are all bonds convertible or are there special convertible bonds?
Not all bonds are convertible, in fact most are not. A convertible bond is a special bond with an option to exchange the bond for company stock under certain conditions.
What is cb bond?
Maybe a Convertible Bond.
What is a convertible bond?
In finance, a convertible bond is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio.
What do you call a bond that can be changed into a specified number of shares of the issuers common stock?
Such a bond is an convertible bond.
Is your convertible debenture bond certificate worth anything?
yes
What is convertable bond?
In finance, a convertible bond is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio.
What is the purpose of convertible bonds?
A convertible bond is issued by financial institutions. It differs from standard bonds in that it can be converted into company stock. The purpose of this is to provide additional security for the customer.
What are the benefits of purchasing a convertible bond?
Being able to convert it to stock makes the investment more flexible. Learn more at http://www.e-personalfinance.com/article/What-Are-the-Advantages-of-Convertible-Bonds.html
What is the other name for convertible bond?
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What is the common definition of convertible debt?
A convertible debt is often a term heard in the finance business. By definition is it a type a bond, which has a maturity of 10 years or more, which is then converted into stocks or cash of equal value.
What do you mean by FCCB?
FCCB stands for Foreign Currency Convertible Bond. It is a type of bond that is issued in a currency different from the issuer's domestic currency and can be converted into the issuer's equity shares at a predetermined conversion price. FCCBs allow companies to raise funds from international markets and provide the potential for investors to participate in the company's growth.
