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Convertible bond

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In finance, a convertible bond or convertible note or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. [1]

44 relations: Binomial options pricing model, Bloomberg L.P., Bond (finance), Cliquet option, Common stock, Convertible arbitrage, Convertible security, Cornering the market, Cost of capital, Coupon (bond), Daniel Drew, Death spiral financing, Dilutive security, Equity-linked note, Europe, the Middle East and Africa, Exchangeable bond, Finance, Finite difference methods for option pricing, Hybrid security, INSEAD, Interest, International Accounting Standards Board, International Accounting Standards Committee, Intrinsic value (finance), Jacob Little, List of business entities, M. E. Sharpe, Market price, Over-the-counter (finance), Par value, Preferred stock, Risk reversal, Seed money, Share (finance), Short (finance), Simple agreement for future equity (SAFE), Speculation, Startup company, Stock dilution, Synthetic bond, Trade reporting and compliance engine, Trinomial tree, Volatility (finance), Warrant (finance).

Binomial options pricing model

In finance, the binomial options pricing model (BOPM) provides a generalizable numerical method for the valuation of options.

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Bloomberg L.P.

Bloomberg L.P. is a privately held financial, software, data, and media company headquartered in Midtown Manhattan, New York City.

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Bond (finance)

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders.

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Cliquet option

A cliquet option or ratchet option is an exotic option consisting of a series of consecutive forward start options.

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Common stock

Common stock is a form of corporate equity ownership, a type of security.

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Convertible arbitrage

Convertible arbitrage is a market-neutral investment strategy often employed by hedge funds.

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Convertible security

A convertible security is a security that can be converted into another security.

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Cornering the market

In finance, cornering the market consists of obtaining sufficient control of a particular stock, commodity, or other asset in an attempt to manipulate the market price.

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Cost of capital

In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or, from an investor's point of view "the required rate of return on a portfolio company's existing securities".

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Coupon (bond)

A coupon payment on a bond is the annual interest payment that the bondholder receives from the bond's issue date until it matures.

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Daniel Drew

Daniel Drew (July 29, 1797 – September 18, 1879) was an American businessman, steamship and railroad developer, and financier.

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Death spiral financing

Death spiral financing is a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company’s stock to fall dramatically, which can lead to the company’s ultimate downfall.

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Dilutive security

Dilutive securities are financial instruments like stock options, warrants, convertible bonds, etc.

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Equity-linked note

An equity-linked note (ELN) is a debt instrument, usually a bond, that differs from a standard fixed-income security in that the final payout is based on the return of the underlying equity, which can be a single stock, basket of stocks, or an equity index.

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Europe, the Middle East and Africa

EMEA (EMEIA if India is included) is a shorthand designation meaning Europe, the Middle East and Africa.

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Exchangeable bond

Exchangeable bond (or XB) is a type of hybrid security consisting of a straight bond and an embedded option to exchange the bond for the stock of a company other than the issuer (usually a subsidiary or company in which the issuer owns a stake) at some future date and under prescribed conditions.

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Finance

Finance is a field that is concerned with the allocation (investment) of assets and liabilities (known as elements of the balance statement) over space and time, often under conditions of risk or uncertainty.

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Finite difference methods for option pricing

Finite difference methods for option pricing are numerical methods used in mathematical finance for the valuation of options.

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Hybrid security

Hybrid securities are a broad group of securities that combine the characteristics of the two broader groups of securities, debt and equity.

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INSEAD

INSEAD is a graduate and proprofit business school with campuses in Europe (Fontainebleau, France), Asia (Singapore), and the Middle East (Abu Dhabi).

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Interest

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

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International Accounting Standards Board

The International Accounting Standards Board (IASB) is the independent, accounting standard-setting body of the IFRS Foundation.

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International Accounting Standards Committee

The International Accounting Standards Committee (IASC) was founded in June 1973 in London and was replaced by the International Accounting Standards Board on 1 April 2001.

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Intrinsic value (finance)

In finance, intrinsic value refers to the value of a company, stock, currency or product determined through fundamental analysis without reference to its market value.

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Jacob Little

Jacob Little (March 17, 1794 – March 28, 1865) was an early 19th-century Wall Street investor and the first and one of the greatest speculators in the history of the stock market, known at the time as the "Great Bear of Wall Street".

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List of business entities

A business entity is an entity that is formed and administered as per corporate law in order to engage in business activities, charitable work, or other activities allowable.

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M. E. Sharpe

M.E. Sharpe, Inc., an academic publisher, was founded by Myron Sharpe in 1958 with the original purpose of publishing translations from Russian in the social sciences and humanities.

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Market price

In economics, market price is the economic price for which a good or service is offered in the marketplace.

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Over-the-counter (finance)

Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without the supervision of an exchange.

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Par value

Par value, in finance and accounting, means stated value or face value.

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Preferred stock

Preferred stock (also called preferred shares, preference shares or simply preferreds) is a type of stock which may have any combination of features not possessed by common stock including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.

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Risk reversal

In finance, risk reversal (also known as a conversion when an investment strategy) can refer to a measure of the volatility skew or to an investment strategy.

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Seed money

Seed money, sometimes known as seed funding or seed capital, is a form of securities offering in which an investor invests capital in exchange for an equity stake in the company.

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Share (finance)

In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts.

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Short (finance)

In finance, a short sale (also known as a short, shorting, or going short) is the sale of an asset (securities or other financial instrument) that the seller does not own.

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Simple agreement for future equity (SAFE)

A SAFE (simple agreement for future equity) is an agreement between an investor and a company that provides rights to the investor for future equity in the company similar to a warrant, except without determining a specific price per share at the time of the initial investment.

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Speculation

Speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable at a future date.

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Startup company

A startup company (startup or start-up) is an entrepreneurial venture which is typically a newly emerged business that aims to meet a marketplace need by developing a viable business model around a product, service, process or a platform.

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Stock dilution

Stock dilution, also known as equity dilution, is the decrease in existing shareholders’ ownership of a company as a result of the company issuing new equity.

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Synthetic bond

A synthetic bond is a synthetic position made up of a mixture of investments designed to mimic the cash flow and risk profile of a corporate bond.

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Trade reporting and compliance engine

Unlike stocks, which generally trade transparently on public exchanges, corporate bonds and structured products trade "over-the-counter", meaning they are private transactions between individual counterparties, and so the transactions were generally not publicly reported.

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Trinomial tree

The trinomial tree is a lattice based computational model used in financial mathematics to price options.

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Volatility (finance)

In finance, volatility (symbol σ) is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns.

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Warrant (finance)

In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed price called exercise price until the expiry date.

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Convertible Bond, Convertible Debenture, Convertible bonds, Convertible debenture, Convertible debenture stock, Convertible debt, Convertible financing, Convertible loan, Convertible note.

References

[1] https://en.wikipedia.org/wiki/Convertible_bond

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