InvestorWords.com

mandatory convertible


Definition
A security formed as a hybrid with characteristics of both debt and equity. It can be exchanged at a future date for either shares of common stock or for a new equity issue. Convertible adjustable preferred stock, equity contract notes, and equity commitment notes are all types of mandatory convertibles.


Related Videos




Search for another term


Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z