convertible arbitrage Definition

convertible arbitrage

Definition

A strategy involving the purchase of convertible securities and the subsequent shorting of the corresponding stock. Conversion will offset the short position. The transaction may be profitable if the convertible is priced incorrectly relative to the stock.

This content can be found on the following page:

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

email
print
cite
link
translate
share

convertible arbitrage is ...
... part of the Stocks, Strategies and Trading subjects.

Related Terms

arbitrage - More

reverse hedge - More

set-up hedge - More

convertible arbitrage appears in the definitions of these other terms on BusinessDictionary.com

convertible hedge