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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.

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Q: What is the purpose of convertible bonds?
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Why issue convertible bonds?

Generally, convertible bonds come at a lower cost to the issuer.


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.


Bonds are not always categorized as?

callable or convertible.


What has the author Thomas C Noddings written?

Thomas C. Noddings has written: 'Listed call options' 'Low-risk strategies for the high-performance investor' -- subject(s): Convertible bonds 'The Dow Jones-Irwin guide to convertible securities' -- subject(s): Convertible bonds, Convertible preferred stocks, Convertible securities, Stock warrants


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.


Can you supply information on barclay reverse convertible bonds?

Barclay's bonds as follows 06738GZ86 0678RJR8 0678RRG3 0678RUT1


What are the types of banking convertible securities?

money market instrument , and bonds


Do Convertible bonds lack a call feature?

NO, THEY ALWAYS have a call feature.


What has the author Oswald Peterhans written?

Oswald Peterhans has written: 'Optionsanleihen' -- subject(s): Convertible bonds, Convertible preferred stocks, Option (Contract)


What has the author Dongyi Li written?

Dongyi Li has written: 'On convergence of numerical methods for pricing convertible bonds'


What is a convertible bond used for?

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.


What is a hydrogen bonds job?

the purpose for hydrogen bonds is to hold the 2 strands of DNA together