convertible security

Definition

Bond, preferred stock, or debenture that is exchangeable at the option of the holder for common stock of the issuing corporation.

Use this term in a sentence

They had convertible security and we were all very happy with what they did and how they were doing it.

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You should try to shop around and make sure you are getting a good rate when you buy a convertible security.

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John Smith was a smart investor who bought a $1000 convertible security bond in ABC Incorporated then converted that bond into common stock as soon as the price went up to $75 per share.

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