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Convertible

An instrument (part debt and part equity) that gives the holder the right, but not the obligation, to exchange his…

Floorless Convertible Bond

A convertible bond in which the conversion price is not predetermined but is kept floating. This bond converts into the…

Conversion Price

The price per share basis which is used to calculate the number of shares of common stock the holder of…

Busted Convertible Bond

A convertible bond (CB) whose value is pulled down by a declining stock (its potential equity participation). In other words, the…

Market Conversion Price

The implicit price which has been paid to purchase a common stock indirectly by holding a convertible bond. This price...

Provisional Call Protection

The unrestricted or unconditioned right of an issuer to redeem a convertible. More specifically, the bond may be redeemed without...

Soft Call Protection

The unrestricted or unconditioned right of an issuer to redeem a convertible. More specifically, the bond may be redeemed without...

Soft Call

A call option whereby a convertible bond (CB) can be called back if the share price exceeds a specific level...

Reverse Convertible

A convertible that is associated with an embedded put option, giving the issuer the right to put it (i.e., sell...

Conversion Price

With respect to convertible bonds, it is the principal amount divided by the bond's conversion ratio, which is actually the...