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Common or preferred stock shares that are used as collateral to secure a loan from another party. The loan will earn a fixed interest rate, much like a standard loan, and can be secured or unsecured. A secured loan stock may also be called a convertible loan stock if the loan stock can be directly converted to common shares under specified conditions and with a pre-determined conversion rate, as with an irredeemable convertible unsecured loan stock(ICULS).
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What does it mean for a bond to be issued at a discount or premium?
The Conversion Premium is the amount by which the current price of a convertible security exceeds the current market value of the stock into which it may be converted. For example, a bond with a price of $110, convertible into 20 units of stock, trading at $5.10 (totalling $102) would have a conversion premium of $8.
What type of loan is a convertible debenture?
This is the type of loan which could be converted later into goods or stocks. This permits the company who takes the loan to pay less interest rest then if it was without this option of conversion.
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.
Examples of non stock and loan association?
Savings banks are examples of financial institutions that do not have a stock and loan association. They are limited by law to only provide saving options.
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.
How would you define convertible stock?
Sometimes preferred stock is "convertible." Shareholders who own convertible preferred stock may, at a price announced when the stock is purchased, turn in their preferred stock and receive common stock in its place.
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 a stock option loan, and where can I get one?
A stock option loan is a loan where you can use stock you have already invested in as collateral for a loan, without giving up your investment in the long run. They can be obtained from banks and lenders or even online sites that are devoted to such loans.
What does it mean for a bond to be issued at a discount or premium?
The Conversion Premium is the amount by which the current price of a convertible security exceeds the current market value of the stock into which it may be converted. For example, a bond with a price of $110, convertible into 20 units of stock, trading at $5.10 (totalling $102) would have a conversion premium of $8.
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.
Where can one find reviews for the Step2 Stock Car Convertible Bed?
Step2 Stock Car convertible beds are available to purchase direct from the manufacturers. Customer reviews are also available at Step2, Amazon or Toys R Us.
What type of loan is a convertible debenture?
This is the type of loan which could be converted later into goods or stocks. This permits the company who takes the loan to pay less interest rest then if it was without this option of conversion.
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.
Examples of non stock and loan association?
Savings banks are examples of financial institutions that do not have a stock and loan association. They are limited by law to only provide saving options.
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 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 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.
