Convertible Preferred Stock
Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date.
Also known as "convertible preferred shares". Investopedia Says:
Most convertible preferred stock is exchanged at the request of the shareholder, but sometimes there is a provision that allows the company (or issuer) to force conversion. The value of convertible common stock is ultimately based on the performance (or lack thereof) of the common stock. Related Terms:
Broad-Based Weighted Average Ratchet
Common Stock
Convertible Bond
Convertibles
Mandatory Convertible
Noncumulative
Participating Preferred Stock
Preferred Stock
Premium Adjustable Convertible Security - PEACS
Prior-Preferred Stock |