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Convertible Security (Convertible Bone, Convertible Preferred Stock) A convertible security or convertible is a hybrid security with a provision for the convertible to be exchanged for some other security. Convertible securities have a par value, and their yield is quoted as a percentage of par. Convertibles routinely have an anti-dilution provision, which adjusts the conversion ratio as appropriate in the event of a stock split or stock dividend. www.riskglossary.com /articles/convertible_security.htm   (1000 words)

Income Securities Lists - QuantumOnline The debt securities are generally junior subordinated deferrable interest debentures, which are the lowest ranked of the debt securities issued by the company, and which generally have a maturity date of 30 to 50 years from the date of issue. Mandatory convertible securities are similar to convertible preferreds with the very major exception that they have a fixed conversion date and a variable conversion rate in terms of the number of common shares per preferred share. They are mandatorily convertible at a specific date (generally 3 years from the date of issue) into a variable number of shares of the common stock of the company with the number of shares depending on the market price at the time specified for mandatory conversion. www.quantumonline.com /incomelists.cfm   (2599 words)

Convertible Securities - Convertibles (Fast Answer) A "convertible security" is a security - usually a bond or a preferred stock - that can be converted into a different security - typically shares of the company's common stock. The convertible security financing arrangements might also include caps or other provisions to limit dilution (the reduction in earnings per share and proportional ownership that occurs when, for example, holders of convertible securities convert those securities into common stock). By contrast, in less conventional convertible security financings, the conversion ratio may be based on fluctuating market prices to determine the number of shares of common stock to be issued on conversion. www.sec.gov /answers/convertibles.htm   (846 words)

Giddy - Convertible Bonds and Other Convertible Securities   (Site not responding. Last check: 2007-10-17) The security is typically a subordinated debenture with a fixed principal amount and time to maturity with a right to convert into common stock based on its conversion ratio. Low breakeven convertibles typically have the most equity sensitivity, and given the yield advantage, it is not unusual for a convertible with this characteristic to outperform the common on a total return basis. These securities are typically callable at any time at a call price equal to the higher of the issue price or the market value of the underlying common stock, plus a coupon make whole that gives holders any unpaid coupons for the first three years of the security’s term. pages.stern.nyu.edu /~igiddy/convertibles.htm   (1409 words)

Accounting For The Issuance Of Convertible Securities These securities are attractive to the investor because they provide stated dividend or interest payments and have preference in liquidation, while also allowing the investor to benefit from increases in the value of the issuer's common stock. Issuers of convertible securities should be aware, however, that the issuance of these securities can result in charges for dividends and interest in addition to the stated amounts, resulting in an unexpected reduction in earnings or a reduction in earnings available to common stockholders. For convertible preferred stock, the discount resulting from the allocation of proceeds to the beneficial conversion feature should be treated as analogous to a dividend and should be recognized over the minimum period during which the preferred shareholders can realize that return. www.luca.com /cpajournal/1999/0499/Departments/D520499.HTM   (862 words)

Securities: 45-501 "convertible security" means a security of an issuer that is convertible into, or carries the right of the holder to purchase, or of the issuer to cause the purchase of, a security of the same issuer; "multiple convertible security" means a security of an issuer that is convertible into or exchangeable for, or carries the right of the holder to purchase, or of the issuer or exchange issuer to cause the purchase of, a convertible security, an exchangeable security or another multiple convertible security; "underlying security" means a security issued or transferred, or to be issued or transferred, in accordance with the terms of a convertible security, an exchangeable security or a multiple convertible security. www.gov.pe.ca /securities/index.php3?number=61833   (453 words)

Cuckoo for Coco Puffs? - CFO.com   (Site not responding. Last check: 2007-10-17) What's more, due entirely to the inherent uncertainties that always exist as to whether a convertible security will, in fact, be converted into equity, the security being evaluated was found to be disqualified debt instrument. That provision states that no deduction is permitted for a premium paid to repurchase a convertible to the extent that the repurchase price exceeds the sum of the instrument's adjusted issue price—plus a "normal" call premium. It must be admitted, however, that despite this seemingly unadulterated victory for issuers of these securities, the IRS may not, as policy matter, be entirely comfortable with this outcome. www.cfo.com /printable/article.cfm/3004760?f=options   (1063 words)

Clientele effects and cross-security market making: evidence from calls of convertible preferred securities Financial ...   (Site not responding. Last check: 2007-10-17) Specifically, we examine microstructure variables (trading volume and bid-ask spreads) for a sample of convertible preferred shares in the period surrounding their call announcements.(2) In Section I, we emphasize the reaction of holders of preferred stock to the call announcement, and examine their decision to sell the convertible rather than convert it. Called convertible security holders have what is known as the "call-notice period," time to decide how they wish to respond to the call announcement. If convertible security holders decide to convert and hold the underlying common stock, trading in the convertible security stops right after the call announcement, and there is no clientele effect. www.findarticles.com /p/articles/mi_m4130/is_4_27/ai_53698043   (879 words)

CALAMOS INVESTMENTS  -   Equity Securities: Under normal circumstances, the Fund will invest a portion of its managed assets in equity securities, which are subject to greater fluctuation in market value than other asset classes as a result of such factors as a company's business performance, investor perceptions, stock market trends and general economic conditions. Below investment grade debt securities or comparable unrated securities are commonly referred to as "junk bonds" and are considered predominantly speculative with respect to the issuer's ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. Synthetic Convertible Instruments: The value of a synthetic convertible instrument may respond differently to market fluctuations than a convertible security because a synthetic convertible instrument is comprised of two or more separate securities, each with its own market value. www.calamos.com /view.aspx?id=801677   (705 words)

newsletter.html   (Site not responding. Last check: 2007-10-17) Convertible securities are bascially bonds that come with a provision that allows the owner to convert them into stock in the underlying company. Owning a convertible bond portfolio could be described as a cost effective way to buy regular corporate bonds and taking some of the yield and buying stock options with them. Convertible funds are down around 12% this year so far, less than stocks, but far short of bonds. www.maxfunds.com /maxadvisor/maxadvisor/fav/convertible.html   (461 words)

WomensFinance.com - Jazz Up Your Bond Portfolio with Convertible Securities A special type of security, the convertible bond, will allow you the protection of bond investing with the increased return and zip of stock investing. Convertible securities are hybrids - half bond and half stock. A convertible security is simply a share of preferred stock or a bond that can be converted into common stock by the owner. www.womensfinance.com /wf/bonds/convertibles1.asp   (491 words)

au_be_petty_finmang_3|Shares and convertible securities|Current Events|'Convertible Bonds' (26 June 2002) The convertible bond market has been one of the fastest growing and most attractive markets in the world, according to Arkady Ostrovsky of the Financial Times. Instead of converting, as was common five years ago, most bonds are being allowed to expire with the face value redeemed. Nevertheless, Ostrovsky notes that some still believe that there is a future for the convertible bond because it now trades in the mainstream of the capital markets. wps.prenhall.com /au_be_petty_finmang_3/0,7205,540508-,00.html   (357 words)

CONVERTIBLE SECURITIES: INVESTING FOR THE WARY Convertibles are hybrid securities (either interest-paying bonds or preferred (nonvoting) stock) that can be swapped for common shares of the issuing company's stock at a predetermined price. While not all financial planners are enthusiastic about convertibles, many like their diversification value because they are not strongly correlated to stocks, and they recommend a five to ten percent portfolio allocation. As is apparent, convertibles are a complicated security. www.protectassets.com /news/art/2002/convert0202.html   (823 words)

TheStreet.com: Shaky Markets Could Raise Profile of Convertible Bond Funds Convertible bonds or "converts" are part bond, part stock. For many investors, converts are a way to invest in stocks with less risk -- not a bad proposition with many stocks falling from last year's high valuations. Last year the average convertible bond fund had a 12-month yield of 2.6%, compared with 7.7% for the average multisector or strategic income fund, according to Morningstar. www.thestreet.com /funds/funds/872317.html   (1026 words)

Swiss Re launches mandatory convertible securities of approximately EUR 640 million   (Site not responding. Last check: 2007-10-17) Swiss Re announces the launch of an offering of mandatory convertible securities due 2007, which is expected to generate proceeds of approximately EUR 640 million. The bookbuilding period for the mandatory convertible securities is expected to run until the close of trading at the SWX Swiss Exchange today. The mandatory convertible securities will pay a coupon, which is expected to be between 6.125% and 6.625% per annum payable annually. www.swissre.com /INTERNET/pwswpspr.nsf/alldocbyidkeylu/YHAN-62FHUD?OpenDocument   (700 words)

Preswick Capital Management - Convertible Securities   (Site not responding. Last check: 2007-10-17) Convertible securities share the characteristics of both bonds and stocks. Because convertible bonds can be exchanged for a specified number of shares of stock, they tend to also track the performance of the issuer’s stock. This is because bond interest payments “cushion” the decline of convertibles, and if held to maturity, the securities can pay back their par values. www.preswickcapital.com /convertible_securities.htm   (264 words)

ACM Convertible Securities Fund When the market price of a common stock underlying a convertible security decreases in response to the activities and financial prospects of the company, the value of the convertible security may also decrease. Convertible securities with longer effective maturities are more sensitive to interest rate changes than those with shorter effective maturities. The issuer of the convertible security may not be able to make interest and principal payments when due. www.acmmutualfunds.com   (971 words)

GBL - Securities - The convertible bond On 9 July 1998, GBL issued a euro-bond convertible into existing GBL shares for an amount of DEM 502.8 million and intended for foreign institutional investors. During the term of the bond (1998-2003), the exercise of convertible bonds led to the delivery of 397 existing GBL shares. The GBL convertible bond is quoted on the Luxembourg Stock Exchange. en.gbl.be /stock_market/securities/obligation/default.asp   (207 words)

Convertible Securities   (Site not responding. Last check: 2007-10-17) Convertible securities are securities which can be converted into a different type of security--typically common shares of a company. Issuing convertible securities may be a quicker way to raise capital than other forms of financing such as, public offerings or bank financing. A convertible bond is a corporate bond that can be converted into shares of the issuing company's common stock. www.glencoehedgefund.com /convertible-securities.html   (427 words)

Convertible bond - Wikipedia, the free encyclopedia 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. Although it typically has a low coupon rate, the holder is compensated with the ability to convert the bond to common stock, usually at a substantial premium to the stock's market value. A simple method for calculating the value of a convertible involves calculating the present value of future interest and principal payments at the cost of debt and adds the present value of the warrant. en.wikipedia.org /wiki/Convertible_bond   (371 words)

Convertible Opportunities   (Site not responding. Last check: 2007-10-17) Convertible owners can blame part of their recent ill fortune on hedge funds. Convertibles are hybrids — bonds that can be converted to stock. Franklin Convertible Securities A aims to stay in the middle of the spectrum, holding issues that have some of the yield of bonds and the upside potential of stocks. registeredrep.com /mag/finance_convertible_opportunities   (1053 words)

Dominion Sells Convertible Debt Securities The offering is part of a refinancing plan for debt securities which were called for redemption on Nov. 14 at Dominion's wholly owned subsidiary, Virginia Electric and Power Co. Proceeds will be loaned to Virginia Electric to fund a portion of the redemptions. The securities will be senior unsecured obligations of Dominion and have a coupon rate of 2.125 percent. The securities will be convertible into 13.5865 shares of Dominion common stock per $1,000 principal amount at the option of the holder, provided that the price of Dominion's common stock has appreciated to a price of at least $88.32 or certain other conditions are met. www.dom.com /news/dom2003/pr1204.jsp   (250 words)

WESCO International, Inc. Announces Pricing of Convertible Debt Securities The Convertible Debentures will be convertible under certain circumstances into the Company's common shares at a conversion rate of 23.8872 shares per $1,000 principal amount of Convertible Debentures (equivalent to an initial conversion price of approximately $41.86 per share), subject to adjustment in certain circumstances. The Convertible Debentures will be redeemable at the Company's option on or after October 15, 2010 at a redemption price equal to 100% of the principal amount of the Convertible Debentures being redeemed plus accrued and unpaid interest. The Convertible Debentures will be subject to repurchase at the option of holders on October 15, 2010, October 15, 2015 and October 15, 2020 and upon the occurrence of certain fundamental changes at a repurchase price equal to 100% of the principal amount of the Convertible Debentures being repurchased plus accrued and unpaid interest. www.prnewswire.com /cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-22-2005/0004113221&EDATE=   (538 words)

[No title] Convertibles are either corporate bonds or preferred stocks that can be converted to shares of common stock. Convertibles could also help investors nearing retirement, who are looking to lessen the risk of an equity portfolio, he said. While investors could attempt to replicate convertible performance through a combination of straight stocks and bonds, they would have to continually rebalance the amount of stocks and bonds in their portfolio, he said. www.marketwatch.com /News/Story/Story.aspx?guid={71EB0CEB-6AF2-4BF1-9E7E-5D34E65C440E}&dist=rss&siteid=mktw&rss=1   (1024 words)

Swiss Re successfully places EUR 640 million mandatory convertible securities   (Site not responding. Last check: 2007-10-17) Swiss Re experienced strong demand for the mandatory convertible securities from a diversified investor base and the issue was heavily oversubscribed. The mandatory convertible securities will be issued by a non-Swiss fully owned subsidiary and will be fully guaranteed by Swiss Reinsurance Company. The mandatory convertible securities are expected to be rated AA by Standard and Poor's. www.swissre.com /INTERNET/pwswpspr.nsf/alldocbyidkeylu/YHAN-62GG88?OpenDocument   (696 words)

Companies warm to convertible bonds - May 29, 2001 Anand Iyer, head of global convertible research at Morgan Stanley, says the surge in convertible issuance reflects the Fed's chopping of short-term interest rates — allowing companies to find buyers for their converts at very attractive rates — and nervousness about the stability of the equity markets. As is the case with many convertible bond deals, the recent Lam Research deal was targeted at "qualified buyers" and filed under the Securities and Exchange Commission's Rule 144A, which allows the bonds to be issued without filing a registration statement. A common side effect of their work is that the issuance of a new convertible is sometimes met by a surge in hedge-related short sales of the underlying stock, often temporarily depressing the stock price. money.cnn.com /2001/05/29/investing/standard_convertible   (1294 words)

Convertible Securities Tab If you clear the Symbol field, OptionVue considers the convertible security “gone”, regardless of whether the rest of the fields are still filled in. This is the number of common shares obtainable by the conversion of one unit of this convertible security. To eliminate all convertible securities information, click the Clear button while the Convertible Securities tab is active. www.optionvue.com /Help/Convertible_Securities_Tab.htm   (528 words)

J Giordano Securities Group: Convertible Securities   (Site not responding. Last check: 2007-10-17) J Giordano Securities is committed to helping our clients succeed by identifying, structuring and executing strategies that maximize opportunities through convertible securities transactions. Convertible bonds are primarily traded between broker/dealers and institutional investors. Whether warrants or options, outright or hedged, J Giordano Securities is able to facilitate convertible trading strategies that assist our clients with meeting their goals. www.jgiordano.com /convertibles.asp   (474 words)

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