Convertible bond
Convertible bond is bondholders have the option of converting bonds into stock at a specified exchange rate.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Convertible bond. Bondholders have the option of converting bonds into stock at a specified exchange rate.
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Convertible bond. Security that is convertible into shares of common stock, at a fixed price, at the option of the bondholder.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
