Convertible preferred
Also written optional convertible, convertible.
A preferred that may be exchanged for the issuer's common shares at a set ratio, at the holder's choice. It trades on its income and on that right.
Definition
A preferred stock that can be exchanged for the issuer's common shares at a set conversion ratio, at the holder's choice. It trades partly on its income and partly on the value of that right; most are perpetual and callable, and the issuer can usually force conversion once the stock trades well above the conversion price. A preferred that must convert on a set date is a mandatory convertible, a different instrument. Valued in the Convertible Value calculator.
Definitions describe how YieldDesk reads the term. Nothing on this page is investment advice or a recommendation to buy, sell or hold.